Foreign direct investment is vulnerable to criticism because:
A) It does not bring jobs and new technology to developing countries
B) It can result in job loss for workers in developing countries
C) It does not encourage development of infrastructure
D) It can be used to exploit workers and degrade the environment

Question

Quizplus · Accepted Answer

Foreign direct investment can indeed be used by multinational corporations to take advantage of low labor and environmental standards in order to increase profits, which can lead to exploitation of workers and damage to the environment. It can also result in a dependence on foreign investment rather than promoting the development of domestic industries and infrastructure. However, it can bring jobs and new technology to developing countries, and has the potential to contribute to economic growth and development if done responsibly and with proper regulation.

Foreign Direct Investment Is Vulnerable to Criticism Because