Which of the Following Statements Is True Regarding Foreign Direct

question 45

Multiple Choice

Which of the following statements is true regarding foreign direct investment?

• A)The flow of FDI refers to the total accumulated value of foreign-owned assets at a given time.
• B)FDI has grown more rapidly than world trade and world output.
• C)The general shift toward democratic political institutions has discouraged FDI.
• D)Generally,free market economies oppose FDI.
• E)The globalization of the world economy is having a negative effect on the volume of FDI.

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Definitions:

Negative Reinforcer

An unpleasant stimulus whose removal leads to an increase in the probability that a preceding response will be repeated in the future.

Immediate Reinforcer

refers to a reward that occurs directly after a behavior, enhancing the likelihood of that behavior occurring again in the future.

Latent Learning

Learning that occurs without immediate reinforcement and is not demonstrated until there is an incentive to perform.

Law of Effect

A principle in psychology stating that responses closely followed by satisfaction will become firmly attached to the situation and therefore more likely to recur in similar situations.