Ownership restraints and performance requirements are the two most common ways in which host governments restrict FDI.

Question

Quizplus · Accepted Answer

Ownership restraints refer to regulations that limit the level of foreign ownership or control of domestic companies or assets, while performance requirements stipulate certain conditions that FDI firms must meet to operate within a host country, such as technology transfer or local sourcing of inputs. These two forms of government intervention are among the most prevalent types of restrictions on FDI.

Ownership Restraints and Performance Requirements Are the Two Most Common