When a company brings capital and/or technology to a host country, the host country benefits from the
A) political effect of FDI.
B) resource-transfer effect of FDI.
C) balance-of-payments effect of FDI.
D) bandwagon effect of FDI.

Question

Quizplus · Accepted Answer

Foreign direct investment can make a positive contribution to a host economy by supplying capital, technology, and management resources that would otherwise not be available and thus boost that country's economic growth rate.

When a Company Brings Capital And/or Technology to a Host