In Which Way Can the Source Country's Balance of Payments

question 39

Multiple Choice

In which way can the source country's balance of payments benefit from an FDI made in a foreign country?

• A) From cash outflow during the initial investment to finance the FDI
• B) If the purpose of the foreign investment is to serve the home market from a low-cost production location
• C) From the inward flow of foreign earnings
• D) If FDI is a substitute for direct exports

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Definitions:

Loveless Marriages

Marriages in which the partners lack a romantic or emotional connection, often staying together for reasons other than love.

Legalization

The act of legalizing something that was once forbidden by law.

Prostitution

The practice of engaging in sexual activity in exchange for payment or other benefits.

Destructive

Causing harm or damage in a deliberate or negative way.