Which Is a Possible Adverse Effect of FDI on a Host

question 11

Multiple Choice

Which is a possible adverse effect of FDI on a host country's balance-of-payments position?

• A) When a foreign subsidiary exports a substantial number of its outputs abroad.
• B) When a foreign subsidiary gets a substantial number of its inputs from its host-country.
• C) When most of the foreign subsidiary's management team is from the home country.
• D) Set against the initial capital inflow that comes with FDI must be the subsequent outflow of income as the foreign subsidiary repatriates earnings to its parent company.
• E) the increased competition weakens domestic companies reducing local production and increasing imports

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Definitions:

Ethnic Identity

An individual's sense of belonging to a specific ethnic group, including aspects of culture, heritage, language, religion, and societal norms.

Ethnic Socialization

Ethnic-based messages communicated to children.

Ethnic Socialization

The process through which individuals learn about the culture, traditions, values, and social norms of their ethnic group.

Ethnic Schemas

Cognitive structures that contain knowledge, beliefs, and expectations about ethnic or racial groups, influencing how we process information about and behave towards different groups.