In Which Way Can the Source Country's Balance of Payments

question 39

Multiple Choice

In which way can the source country's balance of payments benefit from an FDI made in a foreign country?

• A) From cash outflow during the initial investment to finance the FDI
• B) If the purpose of the foreign investment is to serve the home market from a low-cost production location
• C) From the inward flow of foreign earnings
• D) If FDI is a substitute for direct exports

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Definitions:

Natural Selection

The process whereby organisms better adapted to their environment tend to survive and produce more offspring.

Behavior Genetics

A field of study that examines the role of genetic and environmental influences on behaviors.

Epigenetics

Analysis of how changes in the expression of genes, as opposed to changes in the genetic code, influence organismal variations.

Epigenetic Effect

An epigenetic effect involves changes in gene expression that are not attributable to alterations of the DNA sequence itself but are heritable; these can result from environmental factors, behaviors, and experiences.