Foreign Direct Investment (FDI) is really important for countries that are still growing. However, there are some challenges they face:
Resource Dependency: Many growing countries need money from outside investors to build roads, schools, and factories.
Economic Volatility: FDI can be unreliable, which can cause economic ups and downs, making it hard for businesses to plan.
Income Inequality: Sometimes, FDI can make the gap between rich and poor even bigger. It often helps those who already have money, while local workers may not benefit much.
To solve these problems, governments can create smart rules. These rules can help make sure that investments are good for everyone and that the negative effects of FDI are lessened.
Foreign Direct Investment (FDI) is really important for countries that are still growing. However, there are some challenges they face:
Resource Dependency: Many growing countries need money from outside investors to build roads, schools, and factories.
Economic Volatility: FDI can be unreliable, which can cause economic ups and downs, making it hard for businesses to plan.
Income Inequality: Sometimes, FDI can make the gap between rich and poor even bigger. It often helps those who already have money, while local workers may not benefit much.
To solve these problems, governments can create smart rules. These rules can help make sure that investments are good for everyone and that the negative effects of FDI are lessened.