If the host government is trying to attract FDI, the central issue is likely to be the kind of incentives the host government is prepared to offer to the multinational enterprise (MNE) and what the firm will commit in exchange. A. TrueB. False

Question

Social Studies

Lizbeth Palmer

13 March, 23:47

If the host government is trying to attract FDI, the central issue is likely to be the kind of incentives the host government is prepared to offer to the multinational enterprise (MNE) and what the firm will commit in exchange. A. TrueB. False

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Answers (1)

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Karen Oconnor · Answer 1

B. True

Explanation:

This stament is right. All countries in the world compete to attract FDI because it brings many benefits to the economy. Investments will contribute to GPD growth, to create more jobs (direct and indirect), and may even imply techology transfer. Both governments and companies attempt to gain the most benefits possible from a deal.