To Encourage Inward FDI,it Is Increasingly Common for Governments To

question 22

Multiple Choice

To encourage inward FDI,it is increasingly common for governments to:

• A)offer tax concessions to firms that invest in their countries.
• B)exclude foreign companies from specific industries.
• C)require that local investors own significant proportion of the equity.
• D)establish control over the behavior of the MNE's local subsidiary.

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Definitions:

Economizing Problem

The fundamental economic issue of meeting unlimited wants with limited resources, necessitating choices and priorities in resource allocation.

Economic Wants

are desires for goods and services that can be met by consuming products.

Economic Means

The methods or resources available for achieving economic objectives, such as wealth accumulation or resource allocation.

Ceteris Paribus

A Latin phrase meaning "all other things being equal," used to analyze the effect of one variable on another by holding all other relevant factors constant.