When a company brings capital and/or technology to a host country, the host country benefits from the:Question 7Select one:a.Balance-of-payments effect of FDI.b.Bandwagon effect of FDI.c.Political effect of FDI.d.Resource-transfer effect of FDI.

In which way can the home country's balance of payments benefit from FDI made in a foreign country?Question 5Select one:a.From cash outflow during the initial investment to finance the FDIb.If FDI is a substitute for direct exportsc.From the outward flow of foreign earningsd.From the inward flow of foreign earnings

Which of these is not the advantage of MNCs to the host country?Select one:a.Increase in social activitiesb.increase in economic activitiesc.Utilization of natural resourced.R&D efforts enhanced.

Which of the following represents a common method for host countries to restrict inward FDI?Question 9Select one:a.Low interest ratesb.Ownership restraintsc.Subsidiesd.Tax incentives

3. Suppose the amount of capital in country F increases.i. Using a diagram show how the world relative supply for good B and the world relative price ofgood B changes.ii. How does it affect the terms of trade of country F?iii. How does it affect the terms of trade of country H?iv. How does it affect the welfare of country F?v. How does it affect the welfare of country H?

Which of the following is not a benefit of multinationals to a country or economy?ImportsJobsIncreased choiceInvestment