In the context of costs to a host country from FDI,while _____ should increase competition,it is less clear that this is the case with _____ in the host nation.
A)subsidies;tariffs
B)import quotas;local content requirements
C)greenfield investments;acquisitions of established firms
D)mergers with domestic firms;government-backed insurance programs

Question

Quizplus · Accepted Answer

While FDI in the form of greenfield investments should increase competition,it is less clear that this is the case when the FDI takes the form of acquisition of an established enterprise in the host nation.Because an acquisition does not result in a net increase in the number of players in a market,the effect on competition may be neutral.

In the Context of Costs to a Host Country from FDI,while