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:

DOT 3

A type of brake fluid that exceeds certain specifications for boiling point and composition, suitable for many vehicles.

DOT 4

A type of brake fluid designated by the Department of Transportation, having specific boiling point and composition standards for vehicle braking systems.

Pushrod

A component in certain engines that transfers motion from the camshaft to open and close the valves.

Brake Pedal

The pedal in a vehicle that operates the brake system to slow down or stop the vehicle.