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FDI Benefits and Costs

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One benefit of FDI is that it creates jobs for a host nation. What are some other costs and benefits of inflow FDI for a host nation such as Germany? Do big firms act in the best interest of a host nation? Do deals start with some intentions but because of different locations can move operations based off the profits they can receive? An idea would be GM and the Opel subsidiary in Germany. Do they just leave Germany and what can the government of Germany do about that?

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The benefits of FDI for countries like Germany include increased inflow of foreign funds as well as increased revenue for the government in the form of taxes. FDI helps in boosting the local economy by creation of new jobs and employment opportunities in the country. However, the main cost of FDI is ...

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Sheetal Jain, PGDM
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  • Post Graduate Diploma in Management (Equivalent to MBA), All India Management Association
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