A home country may encourage outflows of foreign direct investment because it ________.
A)may serve to replace jobs at home
B)can increase long-run competitiveness
C)sends resources out of the home country
D)may take the place of exports

Question

Quizplus · Accepted Answer

Encouraging outflows of foreign direct investment can increase a country's long-run competitiveness by opening up new markets, acquiring new technologies, and diversifying the sources of revenue. This can ultimately benefit the home country by increasing exports, creating new jobs, and stimulating economic growth. While there may be concerns about resources leaving the home country, the potential benefits often outweigh these costs. Therefore, option B is the best choice.

A Home Country May Encourage Outflows of Foreign Direct Investment