Sovereign wealth funds (swfs) are a fast-growing form of foreign direct investment. the size of these funds and the fact that they are investments from government coffers of other nations might be a cause for concern. more specifically, some fear
swfs that did not get to invest in multinational corporations will retaliate with embargoes
these funds will go bankrupt if spread too thin
the governments who offer these funds may obtain sensitive technologies or gain control of strategic resources
these investments are strictly a trend that can be pulled away from large corporations without any repercussion at any time

the governments who offer these funds may obtain sensitive technologies or gain control of strategic resources

Explanation:

A sovereign wealth fund, or as it may also be called a sovereign wealth fund, is a type of investment fund administered by the federal government with a predetermined purpose. A sovereign wealth fund usually manages the proceeds from the extraction of mineral resources, in addition to the royalties from those activities. Among the leading holders of sovereign wealth funds in the world are Norway, Singapore, China and Dubai.

Sovereign wealth funds are a fast-growing form of foreign direct investment. The size of these funds and the fact that they are investments from government coffers of other nations might be a cause for concern. More specifically, some fear the governments who offer these funds may obtain sensitive technologies or gain control of strategic resources.

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