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 the above are true.

Question

Quizplus · Accepted Answer

Host governments do not generally perceive DFI as a remedy to eliminate a country's political problems. While DFI can bring benefits such as job creation and technology transfer, host governments may also have concerns about the impact on local industries, the environment, and national security. Thus, the attitude of the host government toward DFI can vary depending on a range of factors.

Which of the Following Is Not True Regarding Host Government