Many Host Countries Are Concerned That a Foreign-Owned Manufacturing Plant

question 57

Multiple Choice

Many host countries are concerned that a foreign-owned manufacturing plant may import many components from its home country,which has negative implications for the host country's

• A)free trade agreements.
• B)inward FDI.
• C)sovereignty.
• D)balance-of-payments position.
• E)gold reserves.

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Definitions:

Circular-Flow Diagram

An illustrative depiction of the economy, highlighting the movement of currency among firms and households within different markets.

Goods and Services

Products and activities that fulfill the needs or desires of consumers, with goods being tangible objects and services being intangible activities.

Factors of Production

The inputs used to produce goods and services, typically classified into four main categories: land, labor, capital, and entrepreneurship.

Money

A medium of exchange that facilitates trade, serves as a unit of account, a store of value, and can be in the form of coins, notes, or electronic.