FDI Can Benefit the Home Country's ________ If the Foreign

question 69

Multiple Choice

FDI can benefit the home country's ________ if the foreign subsidiary creates demands for home-country exports of capital equipment, intermediate goods, complementary products, and the like.

• A) balance of payments
• B) oligopolistic industry
• C) current accounts
• D) licensing endeavors

---

Definitions:

Inefficient

Describes a market or economy in which there are missed opportunities: some people could be made better off without making other people worse off.

Oligopoly

A market structure characterized by a small number of firms dominating the market, leading to limited competition and often higher prices for consumers.

Differentiated Product

A product that is distinct from similar products offered by competitors because of features, branding, quality, or other attributes.

Price Elasticity Of Demand

A measure of how much the quantity demanded of a good responds to a change in price.