In a group of three or four, in the role of advisors to a developed country, you have been asked to outline some of the downsides of outward FDI. Consider the following questions and then share your ideas with the rest of the class.
1. In the view of the group, what are the resource implications of investing in other countries?
2. What is the group’s view that outward FDI might actually damage the balance of payment as they are taking the place of exports?
3. Theoretically, outward FDI can only lead to many job losses at home. Discuss.