FDI and ownership restrictions increase the competitive advantage of foreigners while diminishing that of the local firms.

Question

Quizplus · Accepted Answer

FDI (Foreign Direct Investment) and ownership restrictions are often implemented by countries to protect local firms from foreign competition, ensuring that local companies can maintain or increase their competitive advantage. These restrictions can limit the ability of foreign companies to enter the market, invest freely, or fully own local enterprises, thereby reducing their competitive edge in the local market.

FDI and Ownership Restrictions Increase the Competitive Advantage of Foreigners