Foreign managers trained in the latest management techniques can often help to improve the efficiency of operations in the host country,whether those operations are acquired or greenfield developments.This benefit of FDI falls into the category of
A)employment effects.
B)balance-of-payments effects.
C)effects on competition.
D)resource transfer effects.
E)autonomy effects.

Question

Quizplus · Accepted Answer

The benefit described in the statement falls under the category of resource transfer effects because it involves the transfer of managerial knowledge and expertise from the foreign company to the host country, which can improve the efficiency of operations in the latter. Employment effects refer to the impact on the local job market, balance-of-payments effects relate to changes in the host country's balance of trade, effects on competition refer to the changes in market structure, and autonomy effects concern the loss of control over economic policy.

Foreign Managers Trained in the Latest Management Techniques Can Often