! 8. Which of the following is not an expecteddisadvantage of the host country through FDI?(a) Uncertainty about the long-term future ofmultinational corporations(b) Lack of control over multinational corporations(C) Environmental issues(d) Import substitution and export promotion

Foreign direct investment (FDI) is a business decision to acquire a substantial stake in a foreign…

8. Which of the following is not an expected disadvantage of the host country through FDI? (a) Uncertainty about the long-term future of nultinational corporations b) Lack of control over multinational corporations (C) Environmental issues (d) Import substitution and export promotion

8. Which of the following is not an expected disadvantage of the host country through FDI? (a) Uncertainty about the long-term future of nultinational corporations b) Lack of control over multinational corporations (C) Environmental issues (d) Import substitution and export promotion

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA1: International Financial Reporting Standards

Section: Chapter Questions

Problem 6MCQ

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Concept explainers

Loanable Funds Theory

The loanable funds theory is a neoclassical theory that determines the interest rate where the demand for loanable investments and supply of loanable funds intersect. To determine the interest rate, this theory employs linear regression and a demand curve. At the equilibrium point, demand for borrowings and demand for the issuance of borrowing funds are inextricably linked. This point of equilibrium should equalize demand and the supply of money available for borrowing.

Question

8. Which of the following is not an expected
disadvantage of the host country through FDI?
(a) Uncertainty about the long-term future of
multinational corporations
(b) Lack of control over multinational corporations
(C) Environmental issues
(d) Import substitution and export promotion

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