FDI often diminishes when the following events occur:

Question

Quizplus · Accepted Answer

All of the above events can create instability and uncertainty, which can make foreign investors hesitant to invest in a country. Extreme currency fluctuations make it difficult for investors to accurately assess the potential returns on their investment. Extreme changes in commodity prices can affect the profitability of industries and create uncertainty in the market. Failure of countries to restructure their economies can lead to economic instability and unpredictability, which can discourage foreign investors.

FDI Often Diminishes When the Following Events Occur