Which of the Following Groups Are Negatively Affected by Foreign

question 55

Multiple Choice

Which of the following groups are negatively affected by foreign direct investment flows?

• A)The host country's workers
• B)The home country's workers
• C)The host country's government
• D)The suppliers of inputs to the affiliates of foreign multinationals

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Definitions:

Payroll Taxes Expense

The cost incurred by employers for taxes associated with employee salaries, such as Social Security and Medicare taxes.

FICA Social Security Taxes

Taxes collected under the Federal Insurance Contributions Act that fund Social Security and Medicare programs.

FICA Medicare

The portion of the U.S. Federal Insurance Contributions Act tax that funds Medicare, providing health insurance to individuals over 65 and some younger with disabilities.

Federal Unemployment Taxes

Taxes imposed by the federal government on employers to fund state unemployment agencies and provide unemployment compensation to workers who have lost their jobs.