Which of the Following Is a Disadvantage to a Developing

Multiple Choice

Which of the following is a disadvantage to a developing host country?

A) Transfer pricing may prevent substantial tax revenues from being raised from FDI.
B) Profits are unlikely to remain in the host country, but instead will be repatriated.
C) Domestic producers in the host country may be driven from the market.
D) The inputs to production are typically bought in the host country and the high demand can force up prices.
E) Governments of potential host nations tend to compete with other developing countries and so may end up offering deals to MNCs that are not particularly beneficial to them as a host nation.