The Implications of the Currency Areas Hypothesis of FDI Is

Multiple Choice

The implications of the currency areas hypothesis of FDI is that:

A) firms from countries with strong currencies tend to invest abroad.
B) countries with strong currencies tend to be host countries.
C) countries with weak currencies tend to be sources of direct investment.
D) the pattern of FDI is determined by the level of the real exchange rates relative to then values implied by PPP.