According to the text, a host government would be least likely to provide incentives for direct foreign investment (DFI) into its country if the firm planning DFI:
A) would compete with local firms of the host country.
B) would produce a good not currently available in the host country.
C) would produce a good and export it to other countries.
D) would produce a good not currently available in the host country AND would produce a good and export it to other countries.

Question

Quizplus · Accepted Answer

If the firm planning DFI would compete with local firms of the host country, the host government may consider the entry of the foreign firm as a threat to the domestic industry and may choose not to provide incentives for DFI.

According to the Text, a Host Government Would Be Least