A & B
None of the above
variability of the project's cash flow.
correlation of the project's cash flow relative to the prevailing cash flows of the MNC
would produce a good and export it to other countries.
would produce a good not currently available in the host country
B & C
would compete with local firms of the host country.
The correlations between the country economies is low
The correlations between the country economies is high
the variability of all country economy levels is high.
the host government of that country eliminates all quotas
the host government of that country increases all quotas
the host government of that country eliminates all tariffs
the host government of that country reduces all quotas
people from its headquarters country are transferred to the foreign country to work at the subsidiary.
the products to be produced are going to be exported.
the products to be produced are substitutes for other locally produced products.
low production costs
strong local demand for products
weak local currencies.
all of the above are advantages
Host governments generally perceive FDI as a remedy to eliminate a country's political problems
The ability of a host government to attract FDI is dependent on the country's markets and resources.
Host governments may offer incentives to MNCs in the form of subsidies in certain circumstances.
Some types of FDI will be more attractive to some governments than to others
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