If less than full employment is present,then foreign investments tend to ________ the level of employment in the investing country and __________ foreign investments in the host country.

Question

Quizplus · Accepted Answer

Foreign investments tend to decrease the level of employment in the investing country because they shift production to the host country, where labor costs are lower. This leads to an increase in foreign investments in the host country, as companies seek to take advantage of the lower labor costs.

If Less Than Full Employment Is Present,then Foreign Investments Tend