Question

Although relative factor costs may make a country look attractive as a location for performing a manufacturing activity, the firm must also look at the political economy, where, for example, ______________________________ may eliminate this option.

Answer 1

Although relative factor costs may make a country look attractive as a location for performing a manufacturing activity, the firm must also look at the political economy, where, for example, regulations prohibiting foreign direct investment may eliminate this option.
Polieymakers have periodically raised concerns pertaining to foreign investment in industries which affect national security or an essential na-tional interest.