Which of the Following Statements Is Most Likely to Be

question 13

Multiple Choice

Which of the following statements is most likely to be true regarding the adverse effects of FDI on the host country?

• A)It decreases the level of competition in the host country.
• B)It tends to increase the prices of the products.
• C)It leads to a high rate of unemployment in the long run.
• D)When a foreign subsidiary imports a substantial number of its inputs from abroad,it results in a debit on the current account of the host country's balance of payments.
• E)When a foreign subsidiary sends its profits to its home country,it results in the depletion of gold reserves of the host country.

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Definitions:

Confidence Interval

A set of values, calculated from sample data, expected to encompass an unknown parameter of a population, with a specified confidence level.

Population Proportions

The fraction or percentage of members in a population that possess a particular attribute or characteristic.

Normally Distributed

Describes a distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Test Statistic

A standardized value derived from sample data during a hypothesis test which is used to determine whether to reject the null hypothesis.