In Which of the Following Situations Would FDI Improve the Current

question 67

Multiple Choice

In which of the following situations would FDI improve the current account of the host country's balance of payments?

• A) If the foreign subsidiary imports a substantial number of its inputs from abroad
• B) If the FDI reduces existing employment opportunities
• C) If the FDI is a substitute for imports of goods or services
• D) If the FDI results in substitution of products produced domestically

---

Definitions:

McClelland's Learned Need

A theory suggesting that people's needs for achievement, power, and affiliation are acquired over time based on their life experiences.

Motivation Model

Theoretical frameworks that aim to explain the drive behind individuals' actions, desires, and needs.

Deficiency Needs

In Maslow's hierarchy of needs, these are the basic requirements for physical and psychological well-being that individuals are motivated to fulfill before achieving higher level growth needs.

Growth Needs

Psychological desires for personal development, improvement, and the achievement of one's potential.