Direct Effects of FDI on Employment in the Host Country

question 68

Multiple Choice

Direct effects of FDI on employment in the host country arise when a foreign MNE

• A) brings in managers trained in the latest management techniques from the home country.
• B) creates jobs because of increased local spending by employees of the MNE.
• C) employs a number of host country citizens.
• D) causes local suppliers to hire more people.
• E) creates jobs in the supporting industries.

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Definitions:

Unit Volume

A measurement quantifying the number of units of a product sold or produced.

Volume Objectives

Objectives set by a company to achieve a specified quantity of sales or production volume within a certain timeframe.

Carrying Costs

Expenses related to holding inventory, including storage costs, insurance, and loss due to obsolescence.

Market Share

The proportion of the entire sales volume in a market that is held by a specific brand, product, or company.