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Identify two benefits of FDI to a home country. (Check all that apply.)

a) Increased domestic employment
b) Import restrictions
c) Trade deficits
d) Loss of technological leadership

1 Answer

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Final answer:

Two benefits of FDI to a home country are increased domestic employment and improved technological leadership.

Step-by-step explanation:

Two benefits of FDI to a home country are increased domestic employment and improved technological leadership.

FDI, or Foreign Direct Investment, occurs when a company from one country invests in another country by establishing operations or acquiring businesses. When a home country attracts FDI, it can lead to the creation of new jobs for the domestic workforce. This can stimulate economic growth, increase wages, and reduce unemployment rates.

In addition, FDI often brings advanced technology and knowledge transfer to the home country. As foreign companies invest in the local market, they may introduce new production techniques, research and development capabilities, and innovative business practices. This can enhance the home country's competitive advantage, promote technological advancement, and improve the overall productivity of domestic industries.

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