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:

Authoritarian Personality

A personality type characterized by strict adherence to authority, rigid beliefs, and hostility toward outgroups.

Interpersonal Status Differences

The disparities in rank, social standing, or prestige between individuals in a group or society.

Type A Personality

A temperament characterized by high levels of competitiveness, self-urgency, aggressiveness, and a constant sense of urgency, often linked with stress and health issues.

Extreme Achievement

Accomplishments that go far beyond the usual or expected levels of success.