Practise tracing FDI through aggregate demand, productive capacity, jobs, technology and balance-of-payments flows and evaluating its effect on growth and living standards.
Which criticism of foreign direct investment (FDI) is least valid?
It encourages competition, reduces prices and forces the less efficient domestic firms to leave the market.
It brings workers from its own country and provides only low paying jobs to low skilled local workers.
It is usually withdrawn quickly in case of a global crisis, making developing countries more vulnerable to global shocks.
Its actions often result in environmental degradation, and over exploitation of natural resources.
A