Governments in host country low-cost labor markets are becoming very competitive in providing MNCs with attractive incentives in the form of tax breaks and exemptions from certain costly labor regulations in exchange for foreign direct investment.

Question

Quizplus · Accepted Answer

This statement is true. Many governments in low-cost labor markets offer attractive incentives to MNCs to encourage foreign direct investment in their countries. These incentives may include tax breaks, exemptions from certain labor regulations, and other forms of support.

Governments in Host Country Low-Cost Labor Markets Are Becoming Very