Which of the following is most likely to be the effect of FDI in the form of a greenfield investment on the host country?
A)It drives down prices and increases the economic welfare of consumers.
B)It raises unemployment levels.
C)It causes firms to fight for scarce capital investments.
D)It leads to an oligopolistic market and unfair pricing.
E)It leads to decreased productivity,product and process innovations,and lesser economic growth.

Question

Quizplus · Accepted Answer

FDI in the form of a greenfield investment often involves the creation of a new facility or establishment. This can lead to increased competition in the host country, driving down prices and increasing economic welfare for consumers.

Which of the Following Is Most Likely to Be the Effect