Foreign direct investment (FDI) can significantly influence domestic politics by shaping economic policies and political priorities. Countries that attract FDI often prioritize creating a favorable business environment, which may entail deregulation or tax incentives. This emphasis can lead to a shift away from social welfare policies in favor of economic growth strategies, impacting marginalized populations. Additionally, the dependence on foreign capital can create vulnerabilities, as governments may feel pressured to align their policies with investor interests at the expense of local needs, complicating the political landscape.