The key theme of this article is that policymakers within the growing countries should be cognizant of the benefits in addition to the downsides earlier than opening up their economies. Impact of FDI on Developing CountriesA much-debated matter in latest months has been the difficulty of international direct investment. This article debates both the positive and negative features and suggests some steps that growing nations can take to emerge stronger rather than weaker after permitting overseas direct funding. Threats to National SovereigntySome Global Corporations are more highly effective than national governments and this development is unhealthy from the social welfare and social justice perspective. There must be a moderation within the battle between global companies and the underprivileged about the rights to have global guidelines versus the proper of the state to care for its residents.

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