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The Free Market View on Foreign Direct Investment (FDI)

Question 39

Multiple Choice

The free market view on foreign direct investment (FDI) :


A) leads to a win-win situation for both home and host countries.
B) considers FDI as an instrument of imperialism.
C) approves FDI only when its benefits outweigh its costs.
D) states that FDI enables countries to tap into their absolute advantages when unrestricted by government intervention.

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