Host governments use a range of controls to restrict inward FDI. The two most common are
A) monetary restraints and prohibition on investing in certain countries.
B) voluntary export restrictions and employment restraints.
C) ownership restraints and performance requirements.
D) tax concessions and government-backed insurance.
E) employment restraints and tax deductions.

Question

Quizplus · Accepted Answer

Ownership restraints and performance requirements are common controls used by host governments to regulate foreign direct investment (FDI) to ensure that foreign companies contribute positively to the local economy and adhere to specific operational standards.

Host Governments Use a Range of Controls to Restrict Inward