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

In terms of employment, the indirect effects of FDI are seldom as large as the direct effects.

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

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.

Historically, countries have occasionally manipulated the tax rules as a way to encourage domestic companies to invest at home.

Until the income tax was introduced, the U.S. government received most of its revenues from tariffs.

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

The flow of foreign direct investment refers to the amount of FDI undertaken over a given period of time, which is normally 5 years.

Governments can protect consumers from unsafe products by issuing a limit or a ban on the importation of such products.

Many investor nations now have government-backed insurance programs to cover major types of foreign investment risk, like the risks of expropriation (nationalization), war losses, and the inability to transfer profits back home.