Why is it said that not all the new jobs created by FDI represent net additions in employment?
A) Because of the uncertainty of the overall economic environment
B) Because most of the job creation is indirect in nature
C) Because jobs created by an investment may be offset by the jobs lost in domestic companies
D) Because the unemployment rate more or less remains constant over the short-term

Question

Quizplus · Accepted Answer

Cynics argue that not all the "new jobs" created by FDI represent net additions in employment. In the case of FDI by Japanese auto companies in the United States, some argue that the jobs created by this investment have been more than offset by the jobs lost in U.S.-owned auto companies, which have lost market share to their Japanese competitors.

Why Is It Said That Not All the New Jobs