1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lisov135 [29]
3 years ago
6

To a greater or lesser degree, many governments can be considered pragmatic nationalists when it comes to foreign direct investm

ent (FDI); this means it has both benefits and costs. FDI can benefit a host country by bringing capital, technology, and jobs, and it can also have a negative effect on a country's balance of payments. Accordingly, government policies are shaped by a consideration of these costs and benefits of FDI.
Home countries can adopt policies designed to both encourage and restrict FDI. Host countries try to attract FDI by offering incentives and try to restrict FDI by dictating ownership restraints and requiring that foreign multinational enterprises (MNE) meet specific performance requirements.
Roll over each item on the left to read its description. Determine whether the scenario represents a benefit or cost to the home or host country, and then drag it to the appropriate place on the chart.
HOST-COUNTRY BENEFIT HOST-COUNTRY COST
HOME-COUNTRY BENEFIT HOME-COUNTRY COST
-outflow of earnings from a foreign subsidiary
a- loss of jobs
b-inflows of foreign earnings
c-substitute for imports
d-loss of economic independence
e-increase in direct and indirect empolyment
f-skills that can be leveraged internationally
g-loss of local entreprenurship
h-Host country limits profit expatriation
i-transfer of new technology
Business
1 answer:
lianna [129]3 years ago
7 0

Answer:

<u>Home Country Benefit</u>

b - inflows of foreign earnings.

The Company operating in the Host Country will send some of it's profits back to it's Home Country and this will be treated as Foreign Earnings.

f-skills that can be leveraged internationally.

The Home Country will gain skills from their experience in the Host Country. These skills can then be used to be competitive on the global market.

<u>Home Country Cost </u>

a- loss of jobs

The Home Country would lose the jobs that it's companies created in the Host Country. These are jobs that could have employed people in the Home Country but now employ people in the Host Country.

h-Host country limits profit expatriation

In order that they don't lose too much money to the Home Country, the Host Country might come up with laws that limit the amount of money that can be taken out from the country this limiting the amount of foreign Earnings that the Home country gets.

<u>Host Country Benefit</u>

c-substitute for imports

The products that the companies founded by FDI are producing could have been products that the Host Country used to import. Now that the goods are being made in the Host Country, there will be no need for imports.

e-increase in direct and indirect employment

The companies founded by FDI in the Host Countries will create employment for people in the company which is direct employment. Many auxiliary services such as drivers and caterers as an example will also spring up to take care of these newly employed folk thereby creating indirect employment.

i-transfer of new technology

The Company formed from FDI will bring with them technology from the Home Country that could be very beneficial to the Host Country.

<u>Host Country Costs. </u>

- Outflow of earnings from a foreign subsidiary

The Companies established through FDI will send some of their profits back to their home Countries. This means that the earnings would leave the Host Country instead of being reinvested in them.

d-loss of economic independence

These FDI companies tend to get very influential and powerful in the Host Country and can sometimes dictate policies. This would mean the companies have significant control over the resources of the Host Country which will lead to a loss of Economic independence. This is the main reason most people believe that China is interested in Africa.

g-loss of local Entrepreneurship

These companies created by FDI will bring with them better technology and capital that will enable them to be very competitive in the local Economy. This will discourage local Entrepreneurs who do not have the economic nor the financial backing to challenge the companies without making huge losses.

You might be interested in
Many depressants, including alcohol, reduce your __________.
sergey [27]
I think the answer is a. I'm not 100 sure though.
7 0
3 years ago
Suppose that the inverse demand equation is p​ = 100 minus 2Q and the supply equation is p​ = 2Q. If the price is controlled at
Irina18 [472]

Answer: P =$50

Q= 25

Explanation: P= 100-2Q

P= 2Q

To get the quantity supplied Q, we have to educate both equations

100-2Q=2Q, 100=2Q+2Q

100=4Q, Q=100/4 , Q=25

To get the equilibrium price we have to substitute the value of Q which is 25 into any of the equation.

Using equation 1

P=100-2Q, P=100-2(25)

P=100-50, P=$50.

If the price is controlled at $60, then the production pays the producer this is because a commodity is not expected to be sold at the equilibrium price, price flooring is a way that government or a group control the market price of a commodity or produce by imposing a particular price on it. This is to ensure that the producers are not at loss with their production, a price floor is always higher than the equilibrium price to be effective as seen in the example given above, price floor is $60 while equilibrium price is $50.

An example of a price floor for services can be seen in the minimum wage stated by the government this is to ensure that people's services are not misused anyhow.

Price flooring most times can lead to surplus quantity produced if consumers are not willing to pay the price, because the producer will be wiling to produce more in order to make more profit.

4 0
3 years ago
Below are some of the accounts that Company J has on their books:
pogonyaev

Answer:

b) $1,900

Explanation:

The computation of the total liabilities is shown below:

= Accounts Payable + Deferred revenue

= $700 + $1,200

= $1,900

The other items are related to the expenses which are shown in the income statement and current assets which are shown on the balance sheet

Therefore, only two items are shown in the total liabilities.

6 0
3 years ago
quilibrium in the money market exists when a. excess demand for money is equal to the quantity demanded of money at a given inte
Elanso [62]

Answer: b. excess supply of money is equal to the quantity demanded of money at a given interest rate.

Explanation:

Equilibrium in the money market takes is usually achieved when the quantity of money demanded is equal to the quantity supplied. The demand curve for money is used to illustrate the quantity of money demanded at a given interest rate. The demand curve for money usually sloped downward, what this tells us is that people would want to hold less of their wealth in the form of physical cash ( money ). When the interest rates on bonds and other alternative investments are way higher.

3 0
3 years ago
What is the main difference between private and government consumer advocacy employers?
sweet [91]

Answer:

Step-by-step explanation:

Step-by-step explanation:

Step-by-step explanation:

Explanation:

6 0
3 years ago
Read 2 more answers
Other questions:
  • Kelly and David are both capable of repairing cars and cooking meals. Which of the following scenarios is not possible? a. Kelly
    13·1 answer
  • Peta received wraparound approach (wrap) services. what does the approach entail?
    9·1 answer
  • If 25 consecutive tosses of a fair coin have all been heads, some individuals tend to think that the next one "must be heads." T
    14·1 answer
  • Why do you think brand advocates willingly promote companies via social media?​
    10·1 answer
  • Protecting intellectual property rights is important to a free enterprise system because:
    7·1 answer
  • The ledger of Claudell Company includes the following unadjusted normal balances: Prepaid Rent $1,000, Services Revenue $55,600,
    15·1 answer
  • Sherry knew that her established customers liked her product much better than her competitor's. She was planning to expand into
    15·1 answer
  • Free brainly anyone wants one ??
    15·2 answers
  • A company started the year with $1,500 of supplies on hand. During the year the company purchased additional supplies of $800 an
    13·1 answer
  • Scott invests money in fixing up his house, an endeavor that he expects will generate profits because he will be able to rent it
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!