1. World problems
  2. Disproportionate foreign investment in indigenous industries

Disproportionate foreign investment in indigenous industries

Nature

Disproportionate foreign investment in indigenous industries refers to the scenario where foreign entities invest significantly more in local industries than domestic investors, often leading to imbalances in economic power and control. This phenomenon can undermine local businesses, stifle innovation, and erode cultural heritage, as foreign investors may prioritize profit over community interests. Additionally, it can result in the exploitation of natural resources and labor, exacerbating social inequalities. The concentration of foreign capital can also create dependency, making indigenous economies vulnerable to external market fluctuations and decisions made by distant stakeholders.This information has been generated by artificial intelligence.

Claim

The process of takeover of traditional industries by foreign investors at best meets with resentment from the local business community and government, and at worst encounters solid opposition. By creating an unfavourable reaction, such action can lead to restrictive measures against all foreign private investors, including those offering scarce technology.

Counter-claim

Foreign investment represents high levels of management skills and production, distribution and marketing technology. The profit motive of transnational corporations and its satisfaction assures countries of assistance in the development of traditional industries. Excessive government investment or nationalization of traditional industries assures a slow-down in development.

Broader

Narrower

Aggravates

Aggravated by

Capitalism
Presentable

Strategy

Value

Foreign
Yet to rate
Disproportion
Yet to rate

SDG

Sustainable Development Goal #12: Responsible Consumption and ProductionSustainable Development Goal #16: Peace and Justice Strong Institutions

Metadata

Database
World problems
Type
(D) Detailed problems
Biological classification
N/A
Subject
  • Commerce » Investment
  • Industry » Industry
  • Society » Foreign
  • Society » Minority, indigenous groups
  • Content quality
    Unpresentable
     Unpresentable
    Language
    English
    1A4N
    D0765
    DOCID
    11407650
    D7NID
    149472
    Last update
    Oct 4, 2020