________________ are three main benefits of inward FDI for a host country.
A) The resource-transfer effect, the employment effect, and the balance-of-payments effect
B) The capital-transfer effect, the technology effect, and the currency exchange effect
C) The cultural awareness effect, the technology effect, and the balance-of-payments effect
D) The resource-transfer effect, the technology effect, and the currency exchange effect
E) Balance of payments effect, currency exchange effect, and the technology effect

Question

Quizplus · Accepted Answer

The resource-transfer effect means that FDI brings in new capital, technology, and management skills, which can have a positive impact on local production capacity and efficiency. The employment effect means that FDI creates new job opportunities for the local workforce. The balance-of-payments effect refers to the fact that FDI can help a country to achieve a balance of payments surplus by increasing the country's export capacity and reducing its dependence on imports.

________________ Are Three Main Benefits of Inward FDI for a Host