Direct effects of FDI on employment in the host country arise when a foreign MNE
A) brings in managers trained in the latest management techniques from the home country.
B) creates jobs because of increased local spending by employees of the MNE.
C) employs a number of host country citizens.
D) causes local suppliers to hire more people.
E) creates jobs in the supporting industries.

Question

Quizplus · Accepted Answer

Direct effects of FDI on employment occur when a foreign MNE employs host country citizens directly, as opposed to indirect effects like increased local spending or job creation in supporting industries.

Direct Effects of FDI on Employment in the Host Country