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The European Union was established to help Europe build up its armed defenses in response to World War I.

A country that follows the pragmatic nationalist view would agree that FDI can benefit a host country through capital, skills, and jobs, but these come at a cost.

A resource-transfer effect of FDI is that it can result in a positive contribution to a host economy by supplying capital and technology which boost the country’s economy.

A business that allows franchising licenses its brand name to a foreign firm in return for a percentage of the profits.

The process of exporting grants a foreign entity the right to produce and sell a firm’s product.

Offshore production refers to FDI undertaken to serve the host market.

Over the last two decades, there has been an increase in FDI directed at the developing nations of the world.

Ownership restraints are one method host countries use to restrict FDI.

Government intervention can be self-defeating because it tends to protect the inefficient rather than help firms become efficient global competitors.

In general, tariff rates on manufactured products tend to be much higher than tariff rates on agricultural products.