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FDI - Coggle Diagram
FDI
Political Ideology and Foreign Direct Investment
The Radical View
The Free Market View
Pragmatic Nationalism
FDI has both benefits and costs
Pursue policies designed to maximize the national benefit
Aggressively court FDI believed to be in the national interest
Benefits and Costs of FDI
Host Country
Host-Country Benefits
employment effects
Balance-of-payment effects
effect on competition and economic growth
Resource-transfer effects
Host-Country Costs
adverse effects on competition
adverse effects on the balance of payments
possible effects on national sovereignty and autonomy
Home-Country
Benefits
the home country's balance of payments benefits from the inward flow of foreign earnings
reverse resource-transfer effect
Costs
balance-of-payments effects of outward FDI
employment effects
Government Policy Instruments and FDI
Home-country policies
encouraging outward FDI