How Does Increased Competition Through FDI in the Form of Greenfield

question 140

Multiple Choice

How does increased competition through FDI in the form of greenfield investments impact the host country?

• A)It drives down prices and increases the economic welfare of consumers.
• B)It raises retrenchments and unemployment levels.
• C)It causes firms to fight for scarce capital investments.
• D)It leads to a monopolistic market and unfair pricing.

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Definitions:

Basement Membrane

A thin, dense layer of extracellular matrix that underlies the epithelium and separates it from underlying tissue.

Epithelium

A layer of cells covering the body surfaces and lining internal organs and various glands, serving protective, sensory, and absorptive functions.

Dense Connective Tissue

A type of connective tissue with high tensile strength, composed mainly of collagen fibers, providing support and protection to various body structures.

Cartilage

A flexible, connective tissue found in various forms in the vertebrate body, including joints, rib cage, ear, nose, and throat, providing support and facilitating movement.