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 towards 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 the above are true.

---

Definitions:

Social Insurance

programs designed to provide financial protection against certain life risks (e.g., old age, disability, unemployment) funded by contributions from employers, employees, or both.

Social Security

A government program that provides financial assistance to people with little or no income, mostly the elderly or disabled.

Food Stamp Program

A government assistance program that provides low-income individuals and families with funds to purchase groceries, aiming to reduce hunger and improve nutrition.

Poverty Line

A threshold level of income set by governments or organizations, below which individuals or families are considered to be living in poverty.