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:

Motivations

The reasons or desires that drive individuals to act in a particular way or pursue certain goals, often stemming from internal or external stimuli.

Psychotherapy

A therapeutic treatment involving talking and psychological techniques, aimed at improving an individual's mental health and well-being.

Psychopathology

The scientific study of mental disorders, including their symptoms, causes, and treatments.

Client-centered Therapy

A form of psychotherapy developed by Carl Rogers that emphasizes an empathetic, nonjudgmental environment to facilitate a client's self-discovery and personal growth.