How Can FDI Undertaken to Serve the Home Market Stimulate

question 48

Multiple Choice

How can FDI undertaken to serve the home market stimulate economic growth in the home country?

• A) By freeing home-country resources to concentrate on activities where the home country has a comparative advantage
• B) By importing more goods and services than it is exporting
• C) By circumventing trade barriers that may have prevented direct exports in the past
• D) By reducing demand for home-country exports of capital equipment, intermediate goods, and complementary products

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Definitions:

Clemmensen

A chemical reduction process that converts carbonyl groups in aldehydes or ketones to alkanes using zinc amalgam and hydrochloric acid.

Wolff-Kishner

A chemical reduction process that completely removes oxygen from a carbonyl group, converting it into a methylene group.

Hydroxylamine

A compound with the formula NH2OH, used as a reducing agent and in the synthesis of various chemicals.

Benzaldehyde

An aromatic aldehyde with the formula C6H5CHO, known for its almond-like scent and used in the synthesis of other organic compounds.