Does foreign investment actually benefit a nation in the long term?

Recently leading German politicians have praised themselves for reportedly getting foreign investment back into the country – namely for example Amazon vouching to spend billions. So taking that as an example – say Amazon expands even further into the country and builds a few new distribution centres. At first glance that sounds like extra jobs but really those jobs could equally exist at a german competitior if Amazon was pushed out of the market.

German consumer spending is not unlimited so effectively the more people buy from Amazon the less money they have available to spend in local book shops and other online retailers. Perhaps people buy more items overall but household income has to balance one way or another. Be it less money spend at restaurants or holidays.

Now you could say consumers benefit from tough competition and the resulting price fights but in cases were corporations primarily cover a demand based on convenience the real benefit to society is questionable. Are Germans really better off if they can access a worse quality china export product without having to walk anywhere? Its certainly not improving quality of life, health of even their financial bottom line if products dont last long or its impulsive purchases. McDonalds Id say is another US import that has honestly been a net negative for Europe.

Not to mention the long term impact.. killing local business in favour of global corporations creates dependencies that can come back to haunt you (see Europe now desperately trying to build a tech industry of their own after being entirely reliant on US firms for years). Taxation is also an issue as Amazon will pay much lower taxes than 1000 small businesses combined for the same market cover and revenue.

So with a history of German conservatives making terrible long term deals and selling off public infrastructure to private corporations – what is the academic perspective on this? Am I missing something or is this something already disscussed among economists?