Investing in FDI will increase the home firm's exports of components and services.

Question

Quizplus · Accepted Answer

Investing in FDI can lead to increased exports of components and services by the home firm. This is because FDI involves the establishment of foreign affiliates, which may use components and services supplied by the home firm for their production activities. Additionally, FDI can also enhance the competitiveness and efficiency of the home firm, which can help it compete more effectively in international markets and increase its exports.

Investing in FDI Will Increase the Home Firm's Exports of Components