According to the Free Market View,how Does FDI Increase the Efficiency

question 86

Multiple Choice

According to the free market view,how does FDI increase the efficiency of the world economy through MNEs?

• A)The MNE is an instrument for dispersing the production of goods and services to the most efficient locations around the globe.
• B)MNEs extract profits from the host country and take them to their home country and help all countries realize economies of scale.
• C)When an MNE produces products,profits from the investment go abroad,and hence the MNE helps foreign exchange to rotate.
• D)A foreign-owned manufacturing plant may import many components from its home country,thus improving the balance of payments of the host country.
• E)MNEs increase the efficiency of the world economy by increasing the flow of capital in the world market.

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Definitions:

Hierarchy Level

The level or rank of an entity within a broader organizational or systemic structure, often indicating its authority or responsibility level.

Fair Values

An estimate of the market value of an asset or liability, based on current prices in an open market.

Reporting Date

The specific date on which a company's financial position is officially recorded and reported, often used in financial statements and reporting documents.

Earnings Surprise

When a company's actual reported financial results deviate from the expected figures, leading to an unexpected increase or decrease in its stock price.