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What Are The Disadvantages Of Foreign Direct Investment?

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1.FDI has and adverse effects on competition.
2.FDI will be make the host country lost the control over domestic policy.
3.One of the most indirect disadvantages of foreign direct investment is that the economically backward section of the host country is always inconvenienced when the stream of foreign direct investment is negatively affected.
4.It has been observed that the defense of a country has faced risks as a result of the foreign direct investment in the country.
5.Certain foreign policies are adopted that are not appreciated by the workers of the recipient country.
6.Foreign direct investment disadvantageous for the ones who are making the investment themselves.
7.Foreign direct investment may entail high travel and communications expenses.
8.Another disadvantage of foreign direct investment is that there is a chance that a company may lose out on its ownership to an overseas company. This has often caused many companies to approach foreign direct investment with a certain amount of caution.
9.There is considerable instability in a particular geographical region. This causes a lot of inconvenience to the investor.
10.The host country is not well connected with their more advanced neighbors, it poses a lot of challenge for the investors.
11.Inflation is increased
12.Local market is affected badly
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Anonymous answered
The important disadvantage of the foreign direct investment is that the economically backward section of the host country is always inconvinienced when the stream of foreign direct investment negatively affected.

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