The free market view argues that FDI is a benefit to both the source country and to the host country.

Question

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According to the free market view, FDI is believed to bring benefits to both the source country (the country from which the investment originates) and the host country (the country that receives the investment). This is because FDI can provide capital for investment, technology transfer, job creation, and increased competition, which can all contribute to economic growth and development.

The Free Market View Argues That FDI Is a Benefit