Why is foreign direct investment sometimes controversial in developing countries?

1. Multinational corporations help developing countries develop infrastructure

2. People in developing countries prefer that their own multinational corporations invest domestically rather than in richer countries

3. Multinational corporations lend money to local governments at high interest rates

4. Developing countries think multinational corporations keep too much of the profit from their investments

If two countries had completely free trade with each other, why might a multinational corporation still be created such that it holds factories in both countries?

1. Both countries have similar regulatory burdens

2. The multinational corporation wants access to cheaper labor in one of the countries

3. Multinational corporations generally receive better treatment abroad than in their home countries

4. The multinational corporation wants to gain access to markets to which it would not otherwise have access