►	The substitution of employment through automated process in the industrialized world will tend to erode the competitive advantage of the unqualified labor, which so far constitutes the main comparative advantage of LDCs.
There is still disagreement on whether greater openness to financial flows can be a source of instability and on the effects of capital controls on the structure of inflows.
►	FDI is induced by trade and promotes trade as well.
►	FDI, whether in manufacturing, services, or resource extraction, generally produces positive outcomes for the country even when spillovers are modest through competition and linkage effects.
►	FDI should generate more productive and better paid employment.
►	FDI can lead to an improvement in the stock of skills, raise the level of technology, improve access to international markets and integrate countries into international production networks.
►	Capital movements and market openness can stimulate financial deepening and financial development, the creation and strengthening of institutions and the building of a viable regulatory infrastructure to be able to attract capital and minimize volatility.
This will lead to higher growth rates.
►	Financial flows lead to more availability of equity capital permitting companies to diversify away from an excessive dependence on banks and an increased supply of venture capital which facilitates the entry of new firms.
►	The increase in the presence of and the role played by foreign banks accompanying globalization can lead to more financial deepening, import best practices and inject more competition into the banking sector (World Bank 1999).