How Can FDI Undertaken to Serve the Home Market Stimulate

Multiple Choice

How can FDI undertaken to serve the home market stimulate economic growth in the home country?

A) by freeing home-country resources to concentrate on activities where the home country has a comparative advantage
B) by importing more goods and services than it is exporting
C) by circumventing trade barriers that may have prevented direct exports in the past
D) by reducing demand for home-country exports of capital equipment, intermediate goods, and complementary products