The two most common methods of restricting inward FDI are ownership restraints and performance requirements.

Question

Quizplus · Accepted Answer

Ownership restraints and performance requirements are indeed the two most commonly used methods of restricting inward foreign direct investment (FDI). Ownership restraints typically limit the percentage of equity that foreign investors can hold in a company, while performance requirements may impose conditions such as local content requirements, export targets, or technology transfer obligations on foreign investors.

The Two Most Common Methods of Restricting Inward FDI Are