According to the International Trade Theory, FDI may cause all of the following except:
A)stimulate economic growth.
B)cause product prices to fall.
C)cause higher taxes in host-countries.
D)cause the lose of market share to international competitors if a company were prohibited from FDI and low-cost production locations.
E)all of these answers are correct

Question

Quizplus · Accepted Answer

According to the International Trade Theory, FDI can stimulate economic growth, cause product prices to fall, and lead to the loss of market share if a company is prohibited from FDI and low-cost production locations. However, FDI may not cause higher taxes in host-countries. In fact, host-countries often offer tax incentives or exemptions to attract FDI.

According to the International Trade Theory, FDI May Cause All