Which of the following is NOT a market imperfection or genuine comparative advantage that attracts FDI to particular locations?
A) low cost and productive labor force
B) unique sources of raw materials
C) defensive investments
D) an expansive monetary policy

Question

Quizplus · Accepted Answer

An expansive monetary policy does not attract FDI as it refers to a government's decision to increase the money supply and decrease interest rates to stimulate economic growth. This does not create a market imperfection or a genuine comparative advantage that would attract FDI to a particular location.

Which of the Following Is NOT a Market Imperfection or Genuine