Forms of inward direct foreign investment; foreign direct investment policy; advantages and disadvantages of inward foreign direct investment 外商直接投資的形式；外商直接投資政策；外商直接投資的利弊為了搞活經濟，許多國家大力吸引外商直接投資。但是，對外商直接投資對地方經濟發展的影響有不同的看法。本節首先介紹兩種類型的外商直接投資，分別從消極和積極兩個方面來分析外商直接投資的影響。
In order to invigorate economy, many countries vigorously attract inward foreign direct investment. However, there are different opinions on the impact of inward foreign direct investment on local economic development. This section will first introduce two types of inward foreign direct investment, from two aspects: negative and positive to analyze the impact of inward foreign direct investment.
Inward foreign direct investment is usually divided into two types, one is greenfield investment, the other is mergers and acquisitions (M & A) (Kayalvizhi and Thenmozhi, 2017). Greenfield investment also refers to the creation of investment, namely, transnational corporations and other investors in the host country are in accordance with the laws of a host country to set enterprises with ownership of assets partly or totally owned by foreign investors (Aziz, 2017). Transnational M & A refer to investment behaviors such as transnational corporations’ and other investment entities’ obtaining the ownership of all or part of assets of an existing enterprise in a host country through certain procedures and channels (Bailey, 2018). Generally speaking, through M & A method, existing assets are transferred from domestic owners to foreign owners. However, in greenfield investment, there are transnational flows of real direct investment capital or effective capital (Fujiwara, 2017). Therefore, in a host country, assets controlled by a transnational company are at least theoretically new created.
外來直接投資通常分為兩種類型，一種是綠地投資，另一種是并購（M&A）（Kayalvizhi和Thenmozhi，2017）。綠地投資也指投資的創造，即跨國公司和東道國的其他投資者根據東道國的法律，設立資產所有權部分或全部為外國投資者所有的企業（Aziz，2017年）?？綣⒐菏侵縛綣競推淥蹲適堤逋ü歡ǔ絳蠔頹廊〉枚攔鐘釁笠等炕蠆糠腫什腥ǖ耐蹲市形ū蠢?，2018）。一般來說，通過并購方式，現有資產由國內所有者轉移到國外所有者。然而，在綠地投資中，存在真正的直接投資資本或有效資本的跨國流動（Fujiwara，2017年）。因此，在東道國，跨國公司控制的資產至少在理論上是新創造的。Arguments for attracting inward foreign direct investment show that inward foreign direct investment is good for host countries, which is mainly reflected in the following six aspects.
First, many transnational corporations, because of their huge scale and financial strength, have access to financing channels that are not available to enterprises of host countries (Li, Scollay and Gilbert, 2017). These sources of funding may be their domestic enterprises, by virtue of their good standing, the transnational corporations are easier to finance from capital markets than host country enterprises. Therefore, inward foreign direct investment is an important way to utilize foreign capital (Conconi, Sapir and Zanardi, 2016). Second, the crucial role played by technology and management progress in economic growth has been widely accepted (Gunby, Jin, Reed, 2017). However, many countries, especially developing countries, lack resources and skills needed for research and development of their own products and productive technologies (Chen, 2017). Through inward foreign direct investment, the necessary technologies can be introduced to these countries. In the process of localization, overseas-funded enterprises use local labour force and utilize the advanced technology of the parent company for production. Employees of foreign-funded enterprises will join in the local enterprises, then there will be the flow of advanced technology and management concepts, resulting in the so-called technology spillover (Sirin, 2017). Similarly, the advanced management techniques of foreign multinationals can stimulate local suppliers, distributors and competitors to improve their own management techniques, thus creating a similar effect. Third, inward foreign direct investment can increase employment opportunities in host countries (Fujiwara, 2017). Foreign multinationals employ a certain number of host country residents. This creates a direct effect. As a result of this investment, jobs created by consumption of local suppliers and employees of multinational corporations reflect the indirect effects of inward foreign direct investment. Indirect effects are often more than direct effects. Fourth, by increasing consumer choice, inward foreign direct investment can help to raise the level of competition in a domestic market, thereby lowering prices and boosting the economic well-being of consumers (Kayalvizhi and Thenmozhi, 2017). Thus it results in long-term results, including improvements in labour productivity, product and process innovation, and higher rates of economic growth. Fifth, companies established based on inward foreign direct investment often have strong competitive advantages and they can get more profits locally (Conconi, Sapir and Zanardi, 2016). Therefore, they also pay a lot of taxes. In many countries, especially in underdeveloped countries, inward foreign direct investment companies become the biggest taxpayer. Moreover, compared with local enterprises, they also need to pay more additional taxes, which is of positive significance to maintaining the policy operation of the local government and people's welfare. Sixth, foreign-funded enterprises are helpful to improve a host country's balance of payments (Li, Scollay and Gilbert, 2017). The net inflow of foreign funds is an important factor leading to the surplus of capital and financial items. It plays an important role in balancing the overall balance of payments of host countries, promoting the improvement of a host country's balance of payments, and in particular maintaining the surplus of capital projects.
The unfavourable influences of inward direct foreign investment on a host country are mainly manifested in the following six aspects:
First, not all inward foreign direct investment can increase employment (Bailey, 2018). For example, some inward foreign direct investment projects may make the same competitive industries in the host country shrink, then the newly increased jobs may not be enough to offset the jobs lost. The net increase in jobs has therefore also becomes the point of negotiations between transnational corporations and the host government. Second, because host countries often adopt tax incentives to attract foreign-funded enterprises, and foreign-funded enterprises can adopt various legal means of tax avoidance, the tax revenue brought by foreign-funded enterprises is not as large as what is expected (Li, Scollay and Gilbert, 2017). Third, in addition, although foreign-funded enterprises are technically advantageous, they may not necessarily relocate their core technologies to the local enterprises and foreign-funded enterprises will strictly keep their secrets in order to ensure their technological superiority (Fujiwara, 2017). In many cases, foreign-funded enterprises will also suppress the local technological innovation. Fourth, the theory and experience of balance of payments show that long-term capital surpluses can eventually lead to a deficit in current account balances (Kayalvizhi and Thenmozhi, 2017). This is because the capital entered by direct investment is required to remit profits. This will result in the outflow of funds, which will be detrimental to improving the current account of the host country's balance of payments. Fifth, many host governments are worried that inward foreign direct investment will make them lose some of their economic independence. Major decisions made by foreign parent companies will affect the economy of the host country, and the host government has no real control over this. Finally, if the economic strength of a subsidiary of a foreign multinational company is much stronger than that of a domestic enterprise in the host country, the enterprises in the host country will be eliminated from the competition (Bailey, 2018). Once a foreign company gains a monopoly in the market, it will raise the price and adversely affect the economic welfare of the host country. In addition, if a particular industry in a country is the so-called infant industry with potential comparative advantages, allowing foreign direct investment to enter the industry means depriving the development opportunities of the domestic enterprises.