Which of the Following Is Most Likely to Be the Effect

question 60

Multiple Choice

Which of the following is most likely to be the effect of FDI in the form of a greenfield investment on the host country?

• A)It drives down prices and increases the economic welfare of consumers.
• B)It raises unemployment levels.
• C)It causes firms to fight for scarce capital investments.
• D)It leads to an oligopolistic market and unfair pricing.
• E)It leads to decreased productivity,product and process innovations,and lesser economic growth.

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Definitions:

Property Taxes

Taxes paid by property owners to local governments based on the assessed value of their real estate.

Depreciation

An accounting method of allocating the cost of a tangible asset over its useful life.

Insurance

A contract represented by a policy in which an individual or entity receives financial protection or reimbursement against losses from an insurance company.

Schedule E

A tax form used to report income and losses from rental property, royalties, partnerships, S corporations, estates, and trusts.