Western Governors University (WGU) BUS2070 D080 Managing in a Global Business Environment Practice Exam

Maintaining economic independence is a primary focus when discussing foreign direct investment (FDI) restrictions because countries often implement these restrictions to safeguard their domestic markets and protect their sovereignty. By limiting foreign ownership or control within certain sectors, nations seek to maintain greater control over their economic resources, industries, and overall national interests. This can be particularly important in strategic sectors like telecommunications, energy, and national security, where excessive foreign influence could compromise a country's autonomy and decision-making power.

FDI restrictions are often a response to concerns about the potential negative impacts of foreign ownership, such as capital flight, job losses, or exploitation of local resources. By enforcing regulations that prioritize local businesses and industries, countries attempt to ensure that economic benefits remain within their borders and that they can retain a level of control over their economic trajectories.