Resource-seeking FDI
A) attempts to acquire particular resources at a higher real cost than could be obtained in the home country.
B) attempts to acquire particular resources at a lower real cost than could be obtained in the home country.
C) attempts to acquire particular resources at a lower real cost than could be obtained in the host country.
D) all of the above

Question

Quizplus · Accepted Answer

Resource-seeking FDI attempts to acquire particular resources at a lower real cost than could be obtained in the home country. This is usually done to access resources that are not available in the home country or are available at a higher cost. For example, a company that specializes in producing computer chips may invest in a country rich in rare earth metals to gain access to these metals at a lower cost than they could get them in their home country.

Resource-Seeking FDI