Which of the Following Statements Is True of the Radical

question 30

Multiple Choice

Which of the following statements is true of the radical view on foreign direct investment (FDI) ?

• A) Governments embracing this view consider both the pros and cons of FDI and approve only if benefits outweigh costs.
• B) It believes FDI should lead to a win-win situation for both home and host countries.
• C) It suggests that FDI will enable countries to tap into their absolute or comparative advantages by specializing in the production of certain goods and services.
• D) Governments embracing this view often nationalize multinational enterprise (MNE)assets or simply ban inbound MNEs.

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Definitions:

Rhode Island

The smallest U.S. state by area, located in the New England region.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, opposite of normal goods.

Income Increases

Situations where individuals or households experience a rise in earnings, affecting their purchasing power and consumption choices.

Demand Curve

A graphical representation that shows the relationship between the quantity of a good or service consumers are willing and able to purchase and its price.