Discuss the below in a 500 words:
Global Business Environment
Resource-transfer effects, employment effects, balance-of-payment effects, and effects on competition and economic growth are the major benefits a country receives from inward FDI. Three costs of FDI concern host countries, namely:
1) they arise from possible adverse effects on competition within the host nation,
2) adverse effects on the balance of payments, and
3) the perceived loss of national sovereignty and autonomy.
Q: Discuss the benefits and costs of FDI from the perspective of a host country and from the perspective of the home country.