Foreign direct investment can make a positive contribution to a host economy by supplying capital,technology,and management resources that would otherwise not be available and thus boost that country's economic growth rate.

Question

Quizplus · Accepted Answer

Foreign direct investment can indeed bring in capital, technology, and managerial expertise that can benefit the host economy. These resources can lead to the creation of new jobs, the development of new industries, and improvements in overall competitiveness, all of which can contribute to economic growth. However, the ultimate impact of foreign direct investment on a host economy depends on a variety of factors, such as the quality of institutions, the level of human capital, and the extent of local linkages and spillovers.

Foreign Direct Investment Can Make a Positive Contribution to a Host