Current Affairs · Foreign Direct Investment
A developing country allows FDI in its manufacturing sector. Over time, some domestic firms lose market share, but overall employment and export earnings rise. This outcome is an illustration of which of the following?
- 1Simultaneous benefits and costs of FDI for the host country✓
- 2The trade diversion effect of FDI
- 3Technology spillover without employment effects
- 4Net welfare loss due to foreign dominance
Correct answer
Simultaneous benefits and costs of FDI for the host country
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