Which of the Following Is Not True Regarding Host Government

question 29

Multiple Choice

Which of the following is not true regarding host government attitudes toward 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.

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Definitions:

Non-interest Bearing Notes

A type of debt instrument that does not accrue interest over time, requiring the borrower to repay only the principal amount.

Historical Cost

The original monetary value of an asset or investment, not adjusted for inflation or changes in market value.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, used in discounting and investment appraisal.

Maturity Value

The amount due to be paid at the end of a financial instrument's term, including both the principal and any accrued interest.