Direct foreign investment would typically be welcomed if:
A) the products to be produced are substitutes for other locally produced products.
B) people from its headquarters country are transferred to the foreign country to work at the subsidiary.
C) the products to be produced are going to be exported.
D) all of the above

Question

Quizplus · Accepted Answer

Direct foreign investment that involves producing products for export would typically be welcomed by the host country as it can help to increase their exports and create job opportunities. However, if the products produced by the foreign company are substitutes for locally produced products, it may create competition and negatively impact domestic firms. The transfer of employees from the headquarters country is not necessarily a factor for whether or not direct foreign investment would be welcomed.

Direct Foreign Investment Would Typically Be Welcomed If