A home country may encourage outward foreign direct investment because it ________.

Question

Quizplus · Accepted Answer

Encouraging outward foreign direct investment can increase a country's long-run competitiveness as companies gain access to new markets, resources, and knowledge. This can ultimately benefit the home country's economy by promoting growth and innovation. The other options (increasing taxes at home, reducing the number of companies to monitor, and providing access to technology) are not necessarily reasons why a country would encourage outward foreign direct investment.

A Home Country May Encourage Outward Foreign Direct Investment Because