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What Are the Possible Adverse Effects of FDI on a Host

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What are the possible adverse effects of FDI on a host country's balance-of-payments position?


Definitions:

Spot Exchange Rate

The present exchange rate for immediate swap of one currency to another.

Forward Exchange Rate

The price set today for a currency exchange that will occur at a future date.

Spot Exchange Rate

The current exchange rate at which a currency can be bought or sold for immediate delivery.

Forward Exchange Rate

An agreed-upon exchange rate for a currency transaction that will occur at a future date, used for hedging or speculation in foreign exchange markets.

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