Direct Effects of FDI on Employment in the Host Country

question 2

Multiple Choice

Direct effects of FDI on employment in the host country arise when a foreign MNE:

• A)brings in managers trained in the latest management techniques from the home country.
• B)creates jobs because of increased local spending by employees of the MNE.
• C)employs a number of host country citizens.
• D)causes local suppliers to hire more people.

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Definitions:

Maturity Value

The amount that will be paid to the holder of a financial instrument at its maturity date, including principal and any remaining interest.

Times Interest Earned Ratio

A financial metric that measures a company's ability to meet its interest payments on outstanding debt.

Operating Expenses

The ongoing costs for running a business, excluding the cost of goods sold, such as rent, utilities, and salaries.

Profitability

The ability of a business to generate earnings compared to its expenses and other relevant costs, expressed as a percentage or profit margin.