Host Governments Use a Range of Controls to Restrict FDI

question 77

Multiple Choice

Host governments use a range of controls to restrict FDI.The two most common are

• A) monetary restraints and performance requirements.
• B) technology transfer restraints and employment restraints.
• C) ownership restraints and performance requirements.
• D) employment restraints and repatriation limitations.
• E) foreign corporate tax levies and ownership restraints.

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Definitions:

Variable Factor

In economics, an input in the production process that can be adjusted in the short run to change the quantity of output.

Fixed Factors

Inputs in the production process that cannot be easily increased or decreased in a short period of time.

Constant Returns To Scale

a situation in production where increasing all inputs by the same percentage results in output increasing by that same percentage.

Long-run Profits

The potential earnings of a business over a period long enough for all inputs to be adjusted, considering the firm's ability to enter or exit markets.