Britain reserves the right to intervene in FDI by:
A) reserving the right to block foreign takeovers of domestic firms in certain situations.
B) prohibiting FDIs over and above a certain fixed annual amount.
C) nationalizing certain industries that provide essential goods and services.
D) imposing economic sanctions against specific countries.
E) by limiting exports and licensing.

Question

Quizplus · Accepted Answer

Britain does reserve the right to block foreign takeovers of domestic firms in certain situations. The government can intervene, for example, if it believes a national security interest is at stake.

Answer: B 
 This statement is incorrect. Britain does not prohibit FDIs over and above a certain fixed annual amount.

Answer: C 
 This statement is incorrect. While nationalization is a possibility, it is not commonly used.

Answer: D 
 This statement is also incorrect. Economic sanctions are a tool used by the government to influence foreign policy, but they are not directly related to FDI.

Answer: E 
 This statement is also incorrect. Limiting exports and licensing can be used as a tool of trade policy, but it is not directly related to FDI.

Britain Reserves the Right to Intervene in FDI By