A possible effect of FDI in the form of a greenfield investment in a host country is that it
A) drives down prices and increases the economic welfare of consumers.
B) raises unemployment levels.
C) causes firms to fight for scarce capital investments.
D) leads to an oligopolistic market and unfair pricing.
E) leads to decreased productivity, product and process innovations, and lesser economic growth.

Question

Quizplus · Accepted Answer

Greenfield investments can increase competition, leading to lower prices and improved economic welfare for consumers.

A Possible Effect of FDI in the Form of a Greenfield