Foreign direct investment (FDI) is a major source of private capital for developing countries and economies in transition. Host countries need to have proactive policies towards FDI to maximize benefits and minimize risks. A study by Theodore Moran shows that authorities play a crucial role in shaping FDI policies, focusing on investment promotion, domestic content mandates, export-performance requirements, joint-venture requirements, and technology-licensing mandates. The study suggests a new agenda for host governments to make the most of FDI while reducing potential dangers.