Question

What should host countries do to increase foreign direct investments (FDIs) in their nations? A) Restrict...

What should host countries do to increase foreign direct investments (FDIs) in their nations?

A) Restrict certain geographic areas to export businesses

B) Rely on the investing firm to improve local conditions for domestic businesses

C) Reduce tax incentives and loans

D) Improve workforce education and job training

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Answer #1

Foreign direct investment plays an important role in development of an economy. FDI means the direct investment made by the foreign firms or investors in another country, either by establishing a production unit or buying certain shares in the domestic company or firms. FDI inflows are effective in influencing export upgrading in recipient countries. FDI increases the investment patterns in an economy.

The correct option is (b).

B) Rely on the investing firm to improve local conditions for domestic businesses.

Hope you got the answer.

Thanks!

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