The Most Important Concerns Regarding the Costs of FDI for the Home

question 71

Multiple Choice

The most important concerns regarding the costs of FDI for the home country center on the

• A) balance-of-payments and employment effects of outward FDI.
• B) technology capture effect and the perceived loss of national sovereignty.
• C) reverse-resource transfer effect and the exposure to foreign markets caused by FDI.
• D) import of substantial input from abroad and being held to "economic ransom."
• E) exposure to foreign markets and the decreased costs of production.

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Definitions:

P-value

The chance of witnessing outcomes from a test that are as extreme or more extreme than what was actually seen, given the presupposition that the null hypothesis holds.

Confidence Interval

A set of numbers resulting from the statistical examination of a sample, expected to encompass the value of an undetermined parameter of the overall population.

Critical Values

Specific points on the scale of a test statistic that delineate the boundary between rejecting and not rejecting the null hypothesis.

Independent Large Samples

This refers to samples that are drawn from populations in such a way that the selection of a unit in one sample does not influence the selection of units in other samples, and each sample contains a sufficiently large number of observations.