Comparatively, much less FDI was directed to unskilled-labour-intensive manufacturing such as textile, shoes, apparel, food processing, furniture, toys, beverages, simple assembly operations, motor vehicle construction, and services such as trade, restaurants, hotels and so on (see table 3). Thus, (unskilled) labour-abundant countries witnessing an FDI shift towards resource-, capital-, and skilled labour-intensive sectors experienced, ceteris paribus, an increase in income inequality both through labour market effects and, where democratic institutions are weak, via political economy mechanisms. M&A entail an improvement in foreign exchange availability but not in the stock of capital, employment and consumer welfare. Most often, the effect of M&A is negative, as foreign firms generally impose cuts in employment, increases in tariffs, and consolidations among firms leading to, ceteris paribus, adverse distributive effects (Baldwin, 1995).