Which of the Following Is Not True Regarding Host Government

question 47

Multiple Choice

Which of the following is not true regarding host government attitudes toward direct foreign investment (DFI) ?

• A) Host governments may offer incentives to MNCs in the form of subsidies in certain circumstances.
• B) Host governments generally perceive DFI as a remedy to eliminate a country's political problems.
• C) The ability of a host government to attract DFI is dependent on the country's markets and resources.
• D) Some types of DFI will be more attractive to some governments than to others.
• E) All of these are true.

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Definitions:

Profit Centers

Segments or divisions within an organization that are directly responsible for generating profit through their operations and decision-making.

Transfer Price

The price at which goods, services, or intellectual properties are traded between divisions within the same company.

Lemonade Stand

A small, temporary business venture, often run by children, that sells lemonade.

Intermediate Good

Goods that are used in the production process to produce final goods or services.