Which of the following is not true regarding host government attitudes toward direct foreign investment (DFI)?
A) Host governments may offer incentives to MNCs in the form of subsidies in certain circumstances.
B) Host governments generally perceive DFI as a remedy to eliminate a country's political problems.
C) The ability of a host government to attract DFI is dependent on the country's markets and resources.
D) Some types of DFI will be more attractive to some governments than to others.
E) All of these are true.

Question

Quizplus · Accepted Answer

Host governments do not generally perceive DFI as a remedy to eliminate a country's political problems. This statement is incorrect. Host governments may view DFI as a way to promote economic growth and development, but not as a solution to political issues. The other statements are generally true regarding host government attitudes toward DFI.

Which of the Following Is Not True Regarding Host Government