What are the potential benefits and costs of foreign direct investment to a host country? | Homework.Study.com (2024)

Question:

What are the potential benefits and costs of foreign direct investment to a host country?

Foreign direct investment:

Foreign direct investment is how a corporation buys a piece of a firm in another country. When foreign direct investment is made, unknown organizations are directly involved in ordinary tasks in the host country. When a financial supporter takes on new business responsibilities or acquires new business resources, such as forming a sole proprietorship or acquiring a controlling stake in a foreign company, FDI happens.

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The resource transfer impact, the employment effect, the balance of payments effect, and competition and economic growth effects are potential...

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What are the potential benefits and costs of foreign direct investment to a host country? | Homework.Study.com (2024)
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