One of the requirements for economic growth in developing countries is the presence of a significant amount of Foreign Direct Investment (FDI).FDI can increase when foreign firms either locate production plants in the domestic economy or acquire a substantial ownership position in domestic firm.However, along the flow of capital from foreign developed to developing countries, there are always issues related such as national security, influence on the local political power, transfer of knowledge, environmental conservation.After reading the provided short case, you may address the following issues in your report.

1. Discuss on how FDI helps developing countries
2. Should governments of developing countries regulate FDI?If so, when and how?
3. Discuss how FDI may hurt foreign nations when FDI is not regulated
4. Provide examples of developing countries that have benefitted from FDI and those that didn't.

Source: Textbook, pg. 245

Additional Suggested Source:

Moran, T., NetLibrary, Inc, & Ebrary, Inc. (2002).Beyond sweatshops foreign direct investment and globalization in developing countries. Washington, D.C.: Brookings Institution Press.