Things to do:WriteTrueifthestatementiscorrectandwriteFalseifthestatement is incorrect.1). The home country's balanceof payments benefitsfrom the inward flow offoreign earnings.2). FDIhome country's balancecanalso benefittheof payments if the foreignsubsidiary createsdemands for home countryexports of capitalequipment, intermediategoods, and the like.3).country outward FDI ariseBenefitstothehomefrom employment effects.With4).thebalanceofpayments, positiveemployment effects arisewhen the foreignsubsidiary creates demandsfor home countryexports.5).Benefitsarisewhenthehome-country MNE learnsvaluable skills from itsexposure to foreignmarketsthatcansubsequently be transferredback to the home country.6).Whenassessingthecostsand benefits of FDI tothe home country, keep inmind the lessons ofinternational trade theory.of7).Thebalancepaymentssuffers from the initialcapital outflow required tofinance the FDI.8). The current account of thebalance of paymentssuffers if the FDI is asubstitute for directexports.9).Thetermoffshoreproduction refers to FDIundertaken toservéthehome market.10).Homecountryconsumersbenefit if the price ofthe particular productfalls as a result of theFDI.

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Write True if the statement is correct and write False if the statement is incorrect. _1). The home country's balance of payments benefits from the inward flow of foreign earnings. _2). FDI can also benefit the home country's balance of payments if the foreign subsidiary creates demands for home country exports of capital equipment, intermediate goods, and the like. 3). Benefits country outward FDI arise to the home from employment effects.

Write True if the statement is correct and write False if the statement is incorrect. _1). The home country's balance of payments benefits from the inward flow of foreign earnings. _2). FDI can also benefit the home country's balance of payments if the foreign subsidiary creates demands for home country exports of capital equipment, intermediate goods, and the like. 3). Benefits country outward FDI arise to the home from employment effects.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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