Hi Weer. My PhD dissertation concerns Chinese outward foreign direct investment (FDI). Foreign investment, like all economic globalization, presents a trade off between loss of state sovereignty (the government's control of what goes on within the country's borders) and the benefits of being a part of the global economy. FDI is perhaps the most beneficial type of foreign investment. Most obviously, FDI can provide jobs and capital. It can also have "backward linkages" in which domestic firms provide inputs to the foreign firms. Futhermore, it can offer developing countries access to technology, not only "hard" technologies, like machinery, but also "soft" technologies, such as management and organization skills. The main drawback of any type of foreign investment is that, unless a country has strong capital controls, it can exit at any time. This is more difficult for major resource-seeking FDI projects (such as a coal plant) than for more liquid assets (such as a garment factory, made up mostly of very mobile sewing machines). And, of course, portfolio (stocks, bonds) investments can flee a country rapidly, leading to the outcomes seen in the Asian financial crisis of 1997, for example.