Which Is a Possible Adverse Effect of FDI on a Host

Multiple Choice

Which is a possible adverse effect of FDI on a host country's balance-of-payments position?

A) When a foreign subsidiary exports a substantial number of its outputs abroad.
B) When a foreign subsidiary gets a substantial number of its inputs from its host-country.
C) When most of the foreign subsidiary's management team is from the home country.
D) Set against the initial capital inflow that comes with FDI must be the subsequent outflow of income as the foreign subsidiary repatriates earnings to its parent company.
E) the increased competition weakens domestic companies reducing local production and increasing imports