Question

What are 5 advantages and 5 disadvantages of the FDI Confidence Index?

Answer 1

ADVANTAGES

1- IT PROVIDES LOCAL ECONOMIC BENEFITS IN MULTIPLE LOCATIONS

2- IT MAKES INTERNATIONAL TRADE EASIER TO COMPLETE

3- FOREIGN INCOME INCREASES

4- IT IMPROVES HUMAN RESOURCES

5- IT PROVIDES NEW OPPORTUNITIES FOR WORKERS

DISADVANTAGES

1- IT STOPS DOMESTIC INVESTMENTS FROM HAPPENING

2- IT CAN AFFECT CURRENCY EXCHANGE RATES

3- IT LEADS TO EXPLOITATION OF RESOURCES OF ENVIRONMENT

4- EXPENSIVE WHEN INVESTING IN DEVELOPED WORLD DUE TO HIGHER EXCHANGE RATE OR HIGHER CURRENCY VALUES

5- IS NOT WITHOUT RISK , THAT IS , DEPENDENT ON THE COUNTRY'S POLITICAL STABILITY / INSTABILITY AFFECTING THE WORKING OF FOREIGN INVESTMENTS