Question

A fast-growing form of foreign direct investment is sovereign wealth funds (SWFs). Why do these investments by governments with surplus cash flows worry trade experts?

Answer 1

Answer:

Large firm can gain control of natural resources.

Explanation:

Investments by governements with surplus cash flows do worry trade expert as believe as investing in large firm by goverment will take away control of natural resouces by government and corporate will have more control on natural resources, sensitive technologies of nation and management control.

Generally, sovereign wealth funds (SWFs) is governement funded investment to improve economy and develop nation and it´s citizen, however, a fast-growing form of foreign direct investment is sovereign wealth funds will have adverse affect on country´s citizen and resources nation have.