Global Business Environment (300 words)
Resource-transfer effects, employment effects, balance-of-payment effects, and effects on competition and economic growth are the major benefits a country receives from inward FDI. Three costs of FDI concern host countries, namely: 1) they arise from possible adverse effects on competition within the host nation, 2) adverse effects on the balance of payments, and 3) the perceived loss of national sovereignty and autonomy.
Respond to the following:
Question:
Discuss the benefits and costs of FDI from the perspective of a host country and from the perspective of the home country.