Commentary
Society
Unlocked
The Means Of Destruction
28 November 2023
Foreign direct investments (FDIs) were always one of the most important means which help improve not only economic development but also a state´s prestige, thanks to their support of local trade and technology transfer.
Yet, FDIs have both costs and benefits, and there are two possible ways a foreign investor could become part of the state´s economy.
Firstly, the objective of the investor can be based on purely market-oriented motives, driven by economic aims.
Secondly, however, FDIs can also be directed against the particular company because the investor could be motivated by political interests. This is especially relevant when a strategic company produces highly valuable technology or possesses unique “know-how.”
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