How Can FDI Undertaken to Serve the Home Market Stimulate

question 48

Multiple Choice

How can FDI undertaken to serve the home market stimulate economic growth in the home country?

• A) By freeing home-country resources to concentrate on activities where the home country has a comparative advantage
• B) By importing more goods and services than it is exporting
• C) By circumventing trade barriers that may have prevented direct exports in the past
• D) By reducing demand for home-country exports of capital equipment, intermediate goods, and complementary products

---

Definitions:

Benjamin Banneker

An African American almanac author, surveyor, naturalist, and farmer known for his work on early Washington D.C. city plans and for advocating civil rights in the 18th century.

Mathematics

The abstract science of number, quantity, and space, either as abstract concepts (pure mathematics), or as applied to other disciplines such as physics and engineering (applied mathematics).

Mechanics

The branch of physics concerned with the motion of objects and the forces that cause this motion; also refers to the skilled trade of working with machinery.

Yellow Fever Epidemic

A severe outbreak of Yellow Fever, a viral disease transmitted by mosquitoes, which killed thousands in multiple instances throughout history, particularly in densely populated areas.