When Foreign Direct Investments Are Made Part of a Global

question 21

Multiple Choice

When foreign direct investments are made part of a global production network such integration

• A) insures that import opportunities will not be available to indigenous producers.
• B) insures that MNCs will reduce the amount of funds available for investments in the host country.
• C) insures that revenues generated by the local affiliate will not be used to enhance the welfare of the host country.
• D) creates export opportunities that would be otherwise unavailable to indigenous producers.
• E) guarantees that technology will not eventually be transferred to the host country.

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