The following are all good reasons to avoid FDI if possible except:

1- FDI is expensive because the company bears the cost of establishing production facilities in a foreign country

2- FDI is risky because of the problems associated with doing business in a different culture where the "rule of the game" may be different

3- chances are that foreign firms will make costly mistakes the first time when they try FDI

4- when a company wants to establish a major long term presence in a market place