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The Most Important Concerns Regarding the Costs of FDI for the Home-Country

Question 120

Multiple Choice

The most important concerns regarding the costs of FDI for the home-country center on:


A) the balance-of-payments and employment effects of outward FDI.
B) the technology capture effect and the perceived loss of national sovereignty.
C) the reverse-resource transfer effect and the exposure to foreign markets caused by FDI.
D) the import of substantial input from abroad and being held to "economic ransom."
E) the exposure to foreign markets and the decreased costs of production.

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