Final answer:
Countries may object to inward FDI due to fears of losing political control to foreign corporations and the potential for economic exploitation by high-income partners, despite the benefits to economic development.
Step-by-step explanation:
Some countries object to inward Foreign Direct Investment (FDI) for various reasons. One concern is that foreign investment can lead to a loss of domestic political control as powerful business interests and multinational corporations might influence local policies and decisions. Additionally, during the 1950s to 1970s, there was fear among low- and middle-income countries that engagement in international trade and openness to financial capital might result in economic exploitation by high-income trading partners. While foreign investment has the potential to significantly aid in the development of economies, especially in low-income regions, it can also bring possible harm such as undermining local industries, leading to job losses, and affecting the balance of payments.
Objections to inward FDI stem from considerations of national autonomy, potential resource exploitation, and the impact on domestic industries. Striking a balance between attracting foreign investment and safeguarding national interests becomes crucial for countries navigating the complexities of globalization.