Which of the Following Is Most Likely to Be the Effect

question 60

Multiple Choice

Which of the following is most likely to be the effect of FDI in the form of a greenfield investment on the host country?

• A)It drives down prices and increases the economic welfare of consumers.
• B)It raises unemployment levels.
• C)It causes firms to fight for scarce capital investments.
• D)It leads to an oligopolistic market and unfair pricing.
• E)It leads to decreased productivity,product and process innovations,and lesser economic growth.

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Definitions:

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenue.

Free Cash Flow

The amount of cash generated by a business after accounting for operational expenses and capital expenditures, indicating financial health and liquidity.

Capital Expenditures

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment.

Net Cash Provided

The amount of cash generated from a company's operating, investing, and financing activities during a specific period.