Direct foreign investment would typically be welcomed if:

Question

Quizplus · Accepted Answer

Direct foreign investment is generally encouraged when the products produced are intended for export, as this contributes to the growth of the local economy through increased foreign exchange earnings. When products are substitutes for locally produced products, it can lead to competition and the displacement of local industries, which may not be welcomed. Transferring people from the company's headquarters to work at the subsidiary may not necessarily impact the reception of the investment, as this is common practice in many multinational companies.

Direct Foreign Investment Would Typically Be Welcomed If