The indirect employment effects of FDI are often as large as,if not larger than,the direct effects.

Question

Quizplus · Accepted Answer

This statement is true. Indirect employment effects of Foreign Direct Investment (FDI) refer to the impact on employment brought about by the activities of firms that are connected with the foreign investors such as suppliers, distributors, and other related industries. These activities often generate employment, creating a multiplier effect. The indirect employment effects could be as large as the direct effects or even larger, and they are significant in the host country's economic development.

The Indirect Employment Effects of FDI Are Often as Large