Because capital inflows are often accompanied by capital outflows,the economic benefits of foreign direct investment can be controversial.

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Capital inflows, such as foreign direct investment, can bring economic benefits in terms of job creation, technology transfer, and increased competitiveness. However, these benefits can be controversial because capital inflows are often accompanied by capital outflows, which can lead to currency appreciation and potentially harm domestic industries. Additionally, there may be concerns about the ownership and control of key industries and assets in the receiving country.

Because Capital Inflows Are Often Accompanied by Capital Outflows,the Economic