Question

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

Answer 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.

Answer 2

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.

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

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