Which of the following is considered the main drawback of outward FDI for the home country?
A) The repatriation of profits
B) Job loss to overseas locations
C) The acquisition of resources and strategic assets
D) Increased competition

Question

Quizplus · Accepted Answer

The main drawback of outward FDI for the home country is job loss to overseas locations. As companies set up operations in foreign countries, they may move jobs abroad, leading to unemployment in the home country. The repatriation of profits can also be a concern, but it is not the main drawback. The acquisition of resources and strategic assets is a potential benefit of outward FDI, and increased competition is not necessarily a drawback, as it can drive innovation and efficiency.

Which of the Following Is Considered the Main Drawback of Outward