Foreign direct investment (FDI) constitutes a vital part of globalisation. Importantly, the inflow of FDI is also one of the key conditions for growth in Asia. Research has shown that FDI helps to promote technological diffusion from developed economies to developing ones through the dissemination of novel and advanced production techniques. Moreover, FDI creates new employment opportunities, and in some cases, expands the range of consumer products in host countries.

(a) Critically discuss how countries in developing Asia can attract more FDI. Your answer should include the following:

Overview and definition of FDI

Five (5) ways on how developing Asian countries can attract more FDI

Five (5) challenges that may impede FDI inflow

(b) The economic impact of FDI is well-researched. However, how does FDI affect the politics of host countries? Analyse five (5) possible political repercussions of FDI within the context of developing Asia.