Which of the Following Is a Negative Economic Effect of FDI

question 4

Multiple Choice

Which of the following is a negative economic effect of FDI?

• A) Governments protect politically powerful industries with characteristic control.
• B) MNCs in manufacturing are accused of exploiting factory workers.
• C) Although competition from a new foreign affiliate can stimulate local firms,the new entry can also overwhelm them.
• D) Multinational corporations are criticized for repatriating profits to host countries,so that local residents get limited benefit from their presence.

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