Q. Discuss the costs and benefits of FDI to host country?

Benefits to host country Availability of scarce factors of production Improvement in the balance of payment Strengthening of government budget Building economic and social infrastructure Costs of the host country Deteriorate the balance of payment Host country depends on the MNC for technology MNC are reluctant to train local people and uses capital intensive techniques Foreign companies infuse foreign culture into the industry set up and society Sales of domestic companies decrease as foreign company has technologically more superior products.