As for government policies on FDI, it is more common for governments to _______.
A) offer incentives to firms that invest in their countries
B) penalize firms that invest in their countries
C) change safety and environmental rules to accommodate foreign investors
D) offer special incentives to firms from developing countries only

Question

Quizplus · Accepted Answer

It is more common for governments to offer incentives to firms that invest in their countries as a way to encourage foreign direct investment. These incentives can include tax breaks, subsidies, and other benefits that make it more attractive for foreign firms to invest in the country. Penalizing firms that invest in their countries would be counterproductive and discourage foreign investment. Changing safety and environmental rules to accommodate foreign investors could lead to negative impacts on the country's environment and population. Offering special incentives to firms from developing countries only would be discriminatory and go against the principles of free trade.

As for Government Policies on FDI, It Is More Common