Foreign Direct Investment FDI is an investment by an organization from one country to another with the aim of establishing. The following are some of the benefits for the host country. Foreign Direct Investments Pro Cons 3 Disadvantages of FDI. . The following are some of the disadvantageous effects that foreign direct investment may have on the host countries. The resources can be said that such as capital technological and managerial. Foreign Direct Investment FDI reduces the dependence of economy on the imports of raw materials technology etc. Advantages And Disadvantages Of Foreign Institutional Advantages and Disadvantages of Foreign Direct Investment FDI for Germany. Fdi advantages and disadvantages. The first is a green-field investment which involves the establishment of a wholly new operation in a foreign country. FDI occurs when an investor based in one country the home country acquires an asset