Final answer:
The two potential costs of FDI to host countries are job displacement(option a), which leads to structural unemployment, and potential environmental damage due to a reduction in regulations to attract multinational corporations.
Step-by-step explanation:
Two potential costs of Foreign Direct Investment (FDI) to host countries are job displacement and negative impacts on the environment. Job displacement is a tangible cost, where local employment can suffer when multinational corporations (MNCs) bring in their own staff or when the efficiency of FDI disrupts existing jobs.
This outsource-driven displacement might cause structural unemployment and affect the host country's economy negatively, especially in sectors in which FDI is dominant.
In terms of environmental costs, while MNCs can indeed introduce advanced technology and potentially promote eco-friendly practices, they also have the tendency to seek out locations with lower environmental standards to minimize costs. This can lead to a race-to-the-bottom scenario, where countries might lower their environmental regulations to attract MNCs, potentially causing significant ecological harm over time.