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:

Middle Childhood

A developmental stage that covers the period from approximately 6 to 12 years of age, characterized by significant growth in cognitive, emotional, and social domains.

Fatty Tissue

Biological tissue predominately made of adipocytes (fat cells) that store energy, insulate the body, and protect organs.

Muscle

A tissue in the body composed of fibers capable of contracting to produce movement or maintain the position of parts of the body.

Neurons

Nerve cells; cells found in the nervous system that transmit messages.