Question

Which of the following is a typical complaint of host-country competitors against foreign firms? Foreign firms burden the host-country with infrastructure requirements. Foreign firms lure host-country workers to the home-country businesses. Foreign firms do not have to obey host-country laws and regulations. Foreign firms receive financial support from host-country governments.

Answer 1

Answer:

The correct answer is letter "D": Foreign firms receive financial support from host-country governments.

Explanation:

Governments assign in their budgets different amounts for domestic investment. A problem arises when the complexity of the work demands technology and know-how that the domestic industry does not provide or lacks experience. In such scenarios, foreign entities are invited to take care of the projects but, by doing this, governments promote foreign financial expansion instead of domestic industry growth.

That is the reason why in many cases host-country competitors claim governments contribute financially with foreign firms.