Which of the Following Is a Possible Adverse Effect of FDI

question 96

Multiple Choice

Which of the following is a possible adverse effect of FDI on a host country's balance-of-payments position?

• A)A foreign subsidiary exports a substantial number of its outputs abroad.
• B)A foreign subsidiary gets a substantial number of its inputs from the host country.
• C)Increased competition in the domestic markets.
• D)Subsequent outflow of earnings from the foreign subsidiary to its parent company.

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Definitions:

Amygdala

A small, almond-shaped cluster of nuclei located deep within the temporal lobes of the brain, involved in processing emotions such as fear and pleasure.

Soccer Player

An individual who participates in the sport of soccer, whether professionally or as an amateur, playing on a field team aiming to score goals.

Cerebellum

A region of the brain that plays a crucial role in motor control, and it may also be involved in some cognitive functions such as attention and language.

Brainstem Structure

The lower extension of the brain where it connects to the spinal cord, responsible for controlling vital life functions such as breathing and heart rate.