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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