When the capitalist economy developed, its economy developed in a cyclical manner, after each economic cycle the industrial countries' economies fell into the frame of crisis to pass at this stage and continued to develop. then they have to renew their fixed capital. Overseas investment is the best solution for industrialized countries to convert the need-to-replace sewing machines and equipment to less-developed countries and collect a large amount of money to compensate for the purchase of new garment and machinery. Nowadays, when science develops strongly and the economic cycle is shorter and shorter, the demand for innovation is transparent, so developed countries must always find for themselves a market to consume such second-class technology. Therefore, investing abroad is the best solution.

One reason that cannot be ignored is that after achieving independence, all countries have taken steps to develop economic in the direction of opening up and increasing international relations, so there is a great demand for investment activities to restore. economic development so that the country can get out of backward poverty. This is an opportunity for developed countries to take over the markets of developing countries. Foreign investment is the most preventable route to obtain approval from developing countries.

These days economic theories all show that investing abroad is beneficial for both countries. On the other hand, the policies of other countries have changed, industrial countries tend to increase VAT, income tax ..., developing countries use tight protective barriers to protect domestic goods, copper. Time to compete for foreign capital, they advocate tax reduction and great incentives for foreign investors. Therefore, measures to invest abroad are the best way for companies to overcome the tax and protection barriers.

As the industry develops, domestic investment is no longer profitable because comparative advantage does not exist. to increase profits, capitalist countries invest in more backward countries because the production factor is cheap so the profits are high.

On the other hand, large capitalist companies need raw materials and other natural resources to ensure a stable and reliable supply for production. That makes them both highly profitable and monopolistic. At the same time, investment-receiving countries believe that borrowing capital for development is more than voluntarily mobilizing or borrowing to acquire technology from developed countries and developed countries want to attract investment in their countries. must patrol its laws, regulations and international practices.

Foreign investment can be said to have existed in the pre-capitalist era. At that time, British, French, Dutch companies… invested in Asia to exploit natural resources for the own companies. By the 19th period, the process of capital accumulation developed rapidly, which was a prerequisite for capital export of major countries. In 1913 British foreign investment was 3.5 billion, the US was 13 billion mainly to exploit natural resources. It can be said that excess capital is the premise for outward investment.