Indirect Effects of FDI on Employment in a Host Country

question 78

Multiple Choice

Indirect effects of FDI on employment in a host country arise when:

• A) a foreign MNE employs a number of host-country citizens.
• B) jobs are created because of increased local spending by employees of an MNE.
• C) an MNE brings in managers from the home country for its operations in the host country.
• D) an MNE recruits people from the host country for research and development.
• E) an MNE sends it home country employees to host countries for training.

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Definitions:

Rent Controls

Government regulations that limit the amount landlords can charge for renting out a property, intending to make housing more affordable for tenants.

Imposed

Something that is enforced or applied by authority.

Government

The system or group of people governing an organized community, often a state, and the institutions through which policies are set and affairs of state are conducted.

Price Control

Price Control is a government policy or legal stipulation that sets limits on the prices that can be charged for goods and services in a market.