Multiple Choice
According to 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) would produce a good not currently available in the host country AND would produce a good and export it to other countries.
Correct Answer:

Verified
Correct Answer:
Verified
Q2: An MNC will likely benefit most from
Q3: If countries' economies are highly integrated, the
Q4: Direct foreign investment is perceived by foreign
Q5: Some governments restrict foreign ownership of local
Q6: MNCs can probably achieve more desirable risk-return
Q8: According to the text, a firm may
Q9: Which of the following is not a
Q10: Assume a U.S. MNC initiates direct foreign
Q11: Which of the following purchases does not
Q12: To fully benefit from economies of scale,