FDI promoted through regulations and institutions

On the other hand, critics contend that government intervention may harm competitiveness by distorting markets with subsidies or favoritism towards certain companies at the expense of others. Moreover, some question whether regulation is necessary given that most large MNEs already face pressure from shareholders or stakeholders over environmental issues like climate change or human rights abuses across their supply chains which could lead them to voluntarily take steps similar to those mandated through regulations anyway. In addition, there have been cases where governments have abused regulatory power when dealing with multinationals leading some fear it could become a tool for corruption if not handled properly. In conclusion, I believe that carefully crafted regulations should be implemented when it comes to multinationals investing in host countries provided they focus on promoting inclusive growth across all stakeholders while avoiding unnecessary bureaucracy or favoring particular firms over others due its ability guarantee higher returns while ensuring a level playing field between domestic businesses operating in the same sector as well as respect for workers’ rights and protection of our environment which should remain key concerns throughout any policy making process related to FDI promotion