Encouraging FDI may be a risky long- term development strategy for a country because MNCs are often

Question

Quizplus · Accepted Answer

MNCs (Multinational Corporations) are often considered "footloose" because they may relocate their production facilities to other countries if they find more favorable conditions, such as lower labor costs or more lenient regulations. This can make relying on them for long-term development risky for countries, as these corporations might not provide a stable source of investment.

Encouraging FDI May Be a Risky Long- Term Development Strategy