How Can FDI Help a Country Achieve a Current Account

question 67

Multiple Choice

How can FDI help a country achieve a current account surplus?

• A) If the FDI is a substitute for exports of goods or services, the effect can be to improve the current account of the host country's balance of payments.
• B) When the MNE uses a foreign subsidiary to import goods and services to other countries.
• C) When the MNE uses a foreign subsidiary to export goods and services to other countries.
• D) If the FDI is a substitute for imports of goods or services, the effect can be positive on the current account of the home-country's balance of payments.
• E) When the MNE transfers monies to finance the FDI

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Definitions:

Secondary Syphilis

The second stage of syphilis, characterized by skin rashes and mucous membrane lesions.

Sexually Transmitted Infection

Infections that are primarily spread through sexual contact, also known as sexually transmitted diseases (STDs).

Gonorrhea

A sexually transmitted infection caused by the bacterium Neisseria gonorrhoeae, characterized by discharge and painful urination.

Antibiotics

Medications used to treat bacterial infections by killing or inhibiting the growth of bacteria.