Foreign direct investment (FDI) can have a lot to offer an economy. But, the world's nations are becoming increasingly concerned about the impact of FDI on national security. As governments have placed more emphasis on screening investments, they've increased the costs of investments - and reduced the attractiveness - to foreign investors.
David Marchick and Matthew Slaughter look at trends in foreign investment reviews in their new Council of Foreign Relations report, Global FDI Policy. Correcting a Protectionist Drift (June 2008). Marchick was the author, with the late Edward Graham, of US National Security and Foreign Direct Investment (Peterson Institute, 2006).
Marchick and Slaughter point to three reasons for heightened security concerns: