Multiple Choice
Which of the following is not true regarding host government attitudes toward direct foreign investment (DFI) ?
A) Host governments may offer incentives to MNCs in the form of subsidies in certain circumstances.
B) Host governments generally perceive DFI as a remedy to eliminate a country's political problems.
C) The ability of a host government to attract DFI is dependent on the country's markets and resources.
D) Some types of DFI will be more attractive to some governments than to others.
E) All of these are true.
Correct Answer:

Verified
Correct Answer:
Verified
Q41: Due to market imperfections, the cost of
Q42: Managers of MNCs may attempt to expand
Q43: Which of the following is not true
Q44: The overall variability of a firm's returns
Q45: Assume the correlation coefficient between the return
Q46: _ is not a disadvantage of direct
Q48: MNCs often attempt to set up production
Q49: Countries in Eastern Europe are more appealing
Q50: Developing countries are mostly targeted for direct
Q51: To fully benefit from use of foreign