Which of the following is a major deterrent to full ownership of FDI?

Question

Quizplus · Accepted Answer

Market instability can be a major deterrent to full ownership of FDI, as it creates uncertainties and risks for the foreign investor. Political instability, economic volatility, and legal uncertainties can all contribute to market instability and discourage foreign investors from fully owning their FDI operations. Profitability, product differentiation, and competition are important factors to consider in FDI decisions, but they are not necessarily deterrents to full ownership. In fact, owning the entirety of a profitable and differentiated FDI operation can be very attractive to foreign investors, as it allows them to fully capture the benefits of their investment.

Which of the Following Is a Major Deterrent to Full