According to 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

Host governments are generally reluctant to provide incentives for DFI when foreign firms compete with local firms in the host country, as this can lead to negative impacts on the domestic economy, such as job losses and decreased competitiveness of local businesses. In contrast, the presence of foreign firms that produce goods not currently available in the host country or that export goods to other countries can bring benefits to the local economy, such as increased investment, technology transfer, and access to new markets. Therefore, options B and C are both potential drivers of incentives for DFI, while option A is not.

According to the Text, a Host Government Would Be Least