Host governments worry that FDI is accompanied by some loss of economic independence. Their fear is attributed to:

Question

Quizplus · Accepted Answer

Host governments are concerned that Foreign Direct Investment (FDI) might lead to a loss of economic independence due to practices like transfer pricing, which can manipulate profits to minimize tax liabilities, repatriation of funds, which can affect the country's balance of payments, and issues related to national sovereignty, as foreign entities gain control over significant sectors of the economy.

Host Governments Worry That FDI Is Accompanied by Some Loss