Which of the Following Is a Reason for Host Country

question 160

Multiple Choice

Which of the following is a reason for host country intervention in foreign direct investment (FDI) flows?

• A) FDI sends resources out of the home country
• B) Outflows of FDI always cause a loss of jobs
• C) To improve the nation's balance of payments
• D) To prevent loss of technology to other countries

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Definitions:

Economics

The social science concerned with how individuals, institutions, and society make optimal (best) choices under conditions of scarcity.

Scarce Resources

Resources that are limited in supply and cannot meet all the wants and needs of a society.

Trade-offs

Decisions that involve sacrificing one goal or benefit in order to gain another, often used in the context of economic and financial planning.

Free Lunch

An expression that suggests there is no such thing as a benefit without a corresponding cost, even if the cost is not immediately apparent.