Economy, asked by thesahib, 10 months ago

FDI in a host country is far more risky and complicated than exporting.

Answers

Answered by santoshkapadne
1

foreign direct investment

From Wikipedia, the free encyclopedia. A foreign direct investment (FDI) is an investment in the form of a controlling ownership in a business in one country by an entity based in another country.

Answered by gratefuljarette
0

FDI in a host country is far more risky and complicated than exporting.

Explanation:

  • FDI can potentially displace domestic producers by pre-empting their investment opportunities.  
  • FDI in a host country is far more risky and complicated than exporting because it may lead to exploitation of natural resources.
  • Markets protected from international competition by high tariffs or quotas triggered tariff jumping FDI.  
  • FDI may not take place in the absence of required infrastructural facilities.  
  • Corporation tax is high and tax laws and procedures are complex. These factors discourage FDI in host country due to strict government policy.

To know more;

FDI in a host country is far more risky and complicated than exporting.

https://brainly.in/question/4631406

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