Which of the Following Statements Is True

question 46

Multiple Choice

Which of the following statements is true?

• A)Multinational firms tend to reduce the flow of technology between countries.
• B)Most foreign direct investment is found in labor-intensive industries.
• C)Multinationals do not always help to reduce the trade deficit of the host country.
• D)Foreign firms contribute to a significant increase in the host country's employment rate.
• E)Foreign direct investment reduces the stock of capital of the domestic country.

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Definitions:

Continental Drift

The theory that Earth's continents have moved over geologic time relative to each other, thus appearing to drift across the ocean bed.

Mid-Atlantic Ridge

A continuous underwater mountain range in the Atlantic Ocean, formed by tectonic plate divergence.

Submarine Mountain

An underwater mountain, formed by volcanic activity or tectonic movements, rising significantly above the surrounding seafloor.

Meteorites

Solid pieces of debris from objects such as asteroids or comets that have made their way through the Earth's atmosphere and landed on the surface.