Which of the following is not true regarding host government attitudes towards direct foreign investment (DFI)?
A) Host governments may offer incentives to MNCs in the form of subsidies in certain circumstances.
B) Host governments generally perceive DFI as a remedy for their national problems.
C) The ability of a host government to attract DFI is dependent on the country's markets and resources.
D) Some types of DFI will be more attractive to some governments than to others.
E) All of the above are true.

Question

Quizplus · Accepted Answer

While host governments may offer incentives to MNCs in certain circumstances (A), and the ability of a host government to attract DFI is dependent on the country's markets and resources (C), and some types of DFI will be more attractive to some governments than to others (D), it is not true that all host governments generally perceive DFI as a remedy for their national problems (B). Some host governments may see DFI as a threat to their national sovereignty, culture, or environment, or may have concerns about the potential negative impact on local firms and workers.

Which of the Following Is Not True Regarding Host Government