nvestment. FDI has many pitfalls. By FDI the unemployment decrease however, the companies will hire workers with low wages and the working condition and safety of the workers are not good. As unskilled labor is needed workers do not have chance to improve themselves.
             Large-scale flows of FDI also have effects on other domestic economic policies. Reliance on such flows imposes constraints on domestic government policy because of the fear of withdrawal. Further, FDI is embodied in the presence of multinational corporations, which causes powerful lobbies for domestic policies.
             An example to prove pitfalls of FDI can be Mexico. Through the North American Free Trade Agreement (NAFTA), factories in Canada and the United States move to Mexico because they can produce cheaper goods. If this means that Mexicans are forced to work at less than a living wage or that the Mexican environment is polluted due to lax environmental regulations. The only thing they care is low cost. Demand for cheap goods comes at the expense of workers who are f
             ...