Regarding the costs of FDI for the home country,the most important concerns center around:
A) the balance-of-payments and employment effects of outward FDI
B) the technology capture effect and the perceived loss of national sovereignty
C) the resource transfer effect and the inflationary pressures caused by FDI
D) the perceived loss of national sovereignty and inflationary pressures caused by FDI
E) the technology transfer loss and increased competition

Question

Quizplus · Accepted Answer

The balance-of-payments and employment effects of outward FDI are the most pressing concerns for the home country because outbound FDI involves the transfer of financial resources from one country to another, and this can have an impact on the balance of payments. Additionally, FDI may also lead to job losses in the home country if multinational corporations choose to relocate their operations to other countries with lower labor costs.

Regarding the Costs of FDI for the Home Country,the Most