International Political Economist, Robert Gilpin, claimed that in a global economy, states use economic forces to further their national interests.
Recently, this very concern has magnified with the proliferation of sovereign wealth funds (SWFs) and foreign direct investments (FDIs). SWFs are government-controlled assets that grow when states experience excess liquidity from budgetary surpluses.
SWFs are useful investment tools, often used for development, savings, and as stabilization funds to protect against economic volatility.
In contrast, FDIs are investments made by individual firms that usually exert direct control over operations. Ultimately, both FDIs and SWFs raise similar questions regarding the potential influence of foreign capital in local markets.