A study of FDI by the Organization for Economic Cooperation and Development (OECD)found that foreign investors invested significant amounts of capital in R&D in the countries in which they had invested.According to the text,this finding of the study suggests that:
A)R&D opportunities in less developed countries are more profitable than those in developed countries.
B)foreign firms are transferring,upgrading,or creating new technology in those countries.
C)technology has ensured that R&D is much less skill-intensive than it was two decades ago.
D)developed countries lack the R&D resources and skills required to develop their own indigenous technology.

Question

Quizplus · Accepted Answer

Research supports the view that multinational firms often transfer significant technology when they invest in a foreign country.A study of FDI by OECD found that foreign investors invested significant amounts of capital in R&D in host-countries,suggesting that not only were they transferring technology to those countries,but they may also have been upgrading existing technology or creating new technology.

A Study of FDI by the Organization for Economic Cooperation