The most important concerns regarding the costs of FDI for the home co

QUESTION

The most important concerns regarding the costs of FDI for the home country center on the:

A. balance-of-payments and employment effects of outward FDI.

B. technology capture effect and the perceived loss of national sovereignty.

C. reverse-resource transfer effect and the exposure to foreign markets caused by FDI.

D. import of substantial input from abroad and being held to “economic ransom.”

E. exposure to foreign markets and the decreased costs of production.

ANSWER

A