Three main costs of inward FDI concern host countries.These are:
A) the employment effect, the perceived loss of national sovereignty and autonomy, and the resource transfer effect
B) the possible adverse effects of FDI on competition with the host country, the resource transfer effect, and the perceived loss of national sovereignty and autonomy
C) the resource transfer effect, the employment effect, and the possible adverse effects of FDI on competition within the host country
D) the possible adverse effects of FDI on competition within the host country, adverse effects on the balance of payments, and the perceived loss of national sovereignty and autonomy
E) Loss of national sovereignty, increased materialism, increased income and wealth inequities

Question

Quizplus · Accepted Answer

The three main costs of inward FDI for host countries include the possible adverse effects on competition within the host country, adverse effects on the balance of payments, and the perceived loss of national sovereignty and autonomy. These concerns address how FDI can impact domestic industries, financial stability, and the control over economic policies.

Three Main Costs of Inward FDI Concern Host Countries