Ownership restrictions and performance demands are used by ________.
A) host countries to promote FDI
B) host countries to restrict FDI
C) home countries to promote FDI
D) home countries to restrict FDI

Question

Quizplus · Accepted Answer

Ownership restrictions and performance demands are commonly used by host countries to restrict FDI. These restrictions may include limitations on the percentage of ownership that foreign investors can hold in local firms, requirements for local partnerships or joint ventures, and performance requirements that mandate certain levels of local content or exports. These measures are often designed to protect domestic industries and promote economic development, but they can also be used as a tool for political control, particularly in developing countries.

Ownership Restrictions and Performance Demands Are Used by ________