When a Company Brings Capital And/or Technology to a Host

question 3

Multiple Choice

When a company brings capital and/or technology to a host country,the host country benefits from the:

• A)competitive effect of FDI.
• B)resource-transfer effect of FDI.
• C)balance-of-payments effect of FDI.
• D)effect on competition and economic growth.

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Definitions:

Necessities

Basic needs required for sustaining human life, such as food, water, shelter, and clothing.

Income

Money received, especially on a regular basis, for work or through investments.

Industry Life Cycle

A concept that describes the stages of growth and development that an industry goes through from inception, through growth, maturity, and eventually decline.

Stock Prices

The current market price at which shares of a company are bought or sold.