Which of the following is a reason for host country intervention in foreign direct investment (FDI) flows?
A) FDI sends resources out of the home country
B) Outflows of FDI always cause a loss of jobs
C) To improve the nation's balance of payments
D) To prevent loss of technology to other countries

Question

Quizplus · Accepted Answer

Host country intervention in FDI flows can be justified for reasons such as improving the nation's balance of payments. This involves regulating FDI inflows and outflows to ensure that they contribute to the country's current account surplus. Other reasons for intervention may include preventing loss of technology to other countries, but this is not always a primary concern. A is incorrect because FDI can also bring resources into the country. B is incorrect because outflows of FDI may not always result in a loss of jobs as it can lead to economic growth and stimulate job creation.

Which of the Following Is a Reason for Host Country