Which of the Following Is NOT a Reason That Foreign

question 28

Multiple Choice

Which of the following is NOT a reason that foreign direct investment is controversial?

• A)Multinational corporations can be insensitive to local culture and customs.
• B)People in developed countries prefer that multinational corporations invest in their own countries.
• C)Multinational corporations can choose to build factories in countries with weak environmental protections.
• D)Developing countries think multinational corporations keep too much of the profit from their investments.
• E)Multinational corporations help developing countries develop infrastructure.

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Definitions:

Equilibrium

A state of balance in a system where competing forces or influences are equal; in economics, it's where supply equals demand.

Marginal Utility

The change in satisfaction or utility that an individual gains from consuming an additional unit of a good or service.

Consumer Equilibrium

A state where an individual allocates their income in a way that maximizes their utility, given their budget constraints.

Marginal Utility

The extra pleasure or benefit a consumer receives from using an additional unit of a product or service.