According to information in the text, a host government would be least likely to provide incentives for direct foreign investment (DFI) into its country if the firm planning DFI:
A) would compete with local firms of the host country.
B) would produce a good not currently available in the host country.
C) would produce a good and export it to other countries.
D) B and C

Question

Quizplus · Accepted Answer

If the firm planning DFI would compete with local firms of the host country, the host government would be less likely to provide incentives for DFI as it could lead to job losses and other negative effects on the local economy. The other options, such as producing a good not currently available in the host country or exporting to other countries, could be seen as beneficial for the host country's economy and would therefore be more likely to receive incentives.

According to Information in the Text, a Host Government Would