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:

Law Of Effect

A principle that states behaviors are selected and reinforced based on their outcomes or effects, leading to the likelihood of that behavior being repeated.

Temporal Contiguity

The idea that events experienced close together in time are readily associated with each other.

Premack Principle

A psychological principle suggesting that more probable behaviors will reinforce less probable behaviors.

Law Of Effect

A principle in psychology stating that behaviors followed by pleasant consequences are likely to be repeated, while those followed by unpleasant consequences are less likely to be repeated.