Which of the following is a potential benefit of Foreign Direct Investment (FDI) for the host country?

CA Foundation · Business Economics · MTP · April 2025
Which of the following is a potential benefit of Foreign Direct Investment (FDI) for the host country?
(A) A. Increased inflation due to higher government expenditure
(B) B. Reduction in technological transfer to local industries
(C) C. Creation of employment opportunities and skill development
(D) D. Increased dependence on foreign companies for resources

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. Creation of employment opportunities and skill development

Topics: International Trade

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