Why governments intervene in FDI - Reasons for intervention by the host country - Control balance of payments
3 important questions on Why governments intervene in FDI - Reasons for intervention by the host country - Control balance of payments
What is the first reason to control the balance of payments;
FDI inflows are recorded as additions to the balance of payments, a nation gets a boost from an initial FDI inflow.
What is the second reason to control the balance of payments:
Countries can impose local content requirements on investors from other nations for the purpose of local production.
What is the third reason to control the balance of payments:
Exports generated by the new production operation can have a favorable impact on the host country's balance of payments.
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