Answer:
One reason for retreat in the radical position toward foreign direct investment (FDI) in the 1990s was the recognition that FDI can have positive effects on host countries, such as creating jobs, transferring technology and know-how, and stimulating economic growth. This recognition led some to adopt a more moderate position on FDI, acknowledging its potential benefits while also calling for policies and regulations to ensure that these benefits are realized and that the negative effects, such as exploitation of labor and environmental degradation, are minimized.