Briefly Explain the Two Most Common Types of Control Exercised

question 10

Essay

Briefly explain the two most common types of control exercised by host-governments to restrict the inward flow of FDI.

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Definitions:

Investment

Investment refers to the allocation of resources, typically financial, in assets or projects with the expectation of earning a return.

Target Cost

The maximum amount that can be spent on a product while still earning the desired profit margin, usually determined during the design and development stages.

Investment

Assigning financial resources with the aim of achieving returns or making a profit.

Desired Return

The target profit or income level that an investor or business aims to achieve on an investment or project.