Foreign Direct Investment Flashcards

1
Q

Foreign direct investment

A

When a global firm sets up a factory or makes an ownership investment in another country

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2
Q

Problems with FDI

A

Unskilled jobs
Pressurises government
Opportunity cost of grants
Likely to leave

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3
Q

Benefits of FDI

A

Brings jobs
Higher consumer spending
Boosts GDP
Tax revenue
Helps utility 4 FOP

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