These new opportunities bring with them risks, and balancing opportunities against risk has been a challenging task for policy makers, researchers, and the civil society. These stakeholders are working towards developing effective and innovative governance structures which will help their countries in navigating the rough seas of FDI and economic welfare and growth, to reach an island where sustainable and inclusive growth prevails.
Foreign investment has always played a pivotal role in most countries’ political economies. The testament to the same is the fact that more than 3,000 (three thousand) investment agreements have been entered into by various states as of this day. International investments, amongst other advantages, have been seen as aiding a host country in developing a sound economic structure, increasing and diversifying manufacturing, offering
novel and more developed services, creating employment and developing innovative technology. Furthermore, for home countries, outward investments have been known to bring in long-term capital gains and help build economic and political ties with foreign nations. In some cases, such investment can even ensure access to the critical natural resources of the host country.