Which of the following statements does not belong to the main benefits of foreign direct investment (FDI)? FDI creates new jobs and boosts government tax revenues. FDI creates positive knowledge spillovers. FDI brings competition and improves efficiency.

Which of the following statements does not belong to the main benefits of foreign direct investment (FDI)? FDI creates new jobs and boosts government tax revenues. FDI creates positive knowledge spillovers. FDI brings competition and improves efficiency.

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter20: Growth And Less Developed Countries

Section: Chapter Questions

Problem 6SQP

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Question

Which of the following statements does not belong to the main benefits of foreign direct investment (FDI)?

FDI creates new jobs and boosts government tax revenues.

FDI creates positive knowledge spillovers.

FDI brings competition and improves efficiency.

FDI makes local firms more difficult to survive and thus destroys local jobs.

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