Question

Limitations of FDI ?​

Answer 1

Explanation:

Limitation of Foreign Direct Investments (FDI):-

1. HINDRANCE TO DOMESTIC INVESTMENT
2. NEGATIVE INFLUENCE ON EXCHANGE RATES
3. INCREASED COSTS
4. ECONOMICALLY NONVIABLE
5. UNNECESSARY GOVERNMENT CONTROL
6. COLONIZING DEVELOPING ECONOMIES
7. EXPROPRIATION
8. CONTINUOUS POLITICAL CHANGES
9. THREAT TO DOMESTIC INVESTORS
10. DRAINAGE OF COUNTRY'S RESOURCES
11. VULNERABILITY TO GLOBAL SHOCKS