According to information in the text, a host government would be least likely to provide incentives for direct foreign investment (DFI) into its country if the firm planning DFI:
A) would compete with local firms of the host country.
B) would produce a good not currently available in the host country.
C) would produce a good and export it to other countries.
D) B and C

Question

Quizplus · Accepted Answer

If the firm planning DFI would compete with local firms of the host country, the host government would be less likely to provide incentives as it may harm the domestic businesses. On the other hand, if the firm would produce a good not currently available in the host country or export its products to other countries, the host government may see it as an opportunity to strengthen its economy and may provide incentives. Therefore, option A is the best choice.

According to Information in the Text, a Host Government Would