Question

When Crane Automotive Group developed operations in Italy, it not only built a manufacturing plant there but also imports parts from several other European nations. Which home country benefit of FDI does this represent

Answer 1

Answer: Creation of jobs.

Step-by-step explanation:

Foreign Direct Investment is a system or policy whereby industries invest in other countries, thus creating a relationship with them. One of the benefits of this policy is that employment is generated in the home country.

When Crane Automotive Group builds a manufacturing plant in the home country, they are creating employment opportunities for citizens of that country. The importation of parts from several other European countries would help to improve the economies of those nations as they are attracting foreign exchange.

Answer 2

Employment effects

Step-by-step explanation:

When an organization or company is established there is always the need to employ people for the smooth running of the company.

This is the major reason why countries with low unemployment rate usually have many companies in which the citizens and migrants work in than countries with higher unemployment rate.

In the example above the automobile company will give rise to employment to people.