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It can also have various favorable spillovers, like enhancing innovation and efficiency in local businesses, handing over new management and production and technological methods to the local industry, and providing higher-paying jobs for the local population.Yet, FDI could also have disadvantages to developing countries, especially if it is resource-based and the host country has weak government regulation. This paper argues that resourced-based FDI hinders the development of developing countries, especially if accompanied by a weak host government.