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Which of the following are benefits of Foreign Direct Investment (FDI) to the host country? I) Creation…

Creation of employment opportunities, transfer of technology and management expertise, and stimulation of economic growth (I, II and IV only) are key benefits of Foreign…

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Which of the following are benefits of Foreign Direct Investment (FDI) to the host country?
I) Creation of employment opportunities
II) Transfer of technology and management expertise
III) Crowding out of domestic enterprises
IV) Stimulation of economic growth

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Answer and explanation

Correct answer B

Creation of employment opportunities, transfer of technology and management expertise, and stimulation of economic growth (I, II and IV only) are key benefits of Foreign Direct Investment to a host country. Crowding out of domestic enterprises (III) is an adverse competitive effect on local firms rather than a benefit.

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  • Telangana SET (TG SET)

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