In Which of the Following Situations Would FDI Improve the Current

question 52

Multiple Choice

In which of the following situations would FDI improve the current account of the host country's balance of payments?

• A) if the foreign subsidiary imports a substantial number of its inputs from abroad
• B) if the FDI reduces existing employment opportunities
• C) if the FDI is a substitute for imports of goods or services
• D) if the FDI results in substitution of products produced domestically

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