The effects of foreign direct investment (fdi) on the environment in developing countries are now assessed quite differently from in the past

Reduction of Bureaucratic Complexity: Governments of the developing countries should reduce the restrictions in establishing the MNCs. They should simplify the industrial sanctioning procedure and keep free all the foreign investors from unnecessary harassment while registration of firms is going on.

Development of Infrastructure: Governments of the developing countries should take all out efforts to develop infrastructure facilities. Problems of gas, water, electricity, warehouse, port, and transport should be removed.