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Share one (1) example of foreign direct investment (FDI) and explain how it works. What are...

Share one (1) example of foreign direct investment (FDI) and explain how it works. What are the pros and cons associated with your specific example.
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Answer #1

FDI example- apple investment/factories in China.

FDI is an investment which comes in along with management/contolling/ownership into one country from another. That means direct control.

Pros- the company gets cheaper labour from china which is not available in US and it brings in new technology and jobs in china. Also it boosts china's economy by increasing exports from china.

Cons- the current US-China trade war is seen as a con as FDI is a long term investment. Due to the current war Apple wants to disinvest in China but it will create huge losses to shift its manufacturing Base from China to any other country.

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