Pearson eText International Business: The Challenges of Globalization -- Instant Access (Pearson+)
Pearson eText International Business: The Challenges of Globalization -- Instant Access (Pearson+)
9th Edition
ISBN: 9780136879879
Author: John Wild, Kenneth Wild
Publisher: PEARSON+
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Chapter 7.5, Problem 3QS5
Summary Introduction

To Determine:

The purpose of using Ownership restriction and performance demand policy instruments

Introduction:

Foreign Direct Investment (FDI) is the investment made by the individuals and companies of one country in another country in order to obtain control over the business in the local economies. The host countries while welcoming FDI also imposes certain restrictions on the home countries. The two general methods used by host countries to restrict the flow of inward FDI is through ownership restriction and performance demands.

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