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FDI Does Not Benefit the Host Country's Balance of Payments

question 2

True/False

FDI does not benefit the host country's balance of payments if the foreign subsidiary creates demand for home-country exports of capital equipment, intermediate goods, or complementary products.


Definitions:

Energized Solenoids

Solenoids that have been activated through electrical current, thereby moving or controlling a mechanism or system.

Neutral

A transmission setting in which no gear is engaged, allowing the engine to operate or idle without driving the wheels.

ECU

Engine Control Unit; a type of electronic control unit that controls a series of actuators on an internal combustion engine to ensure optimal engine performance.

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