Which of the following is true about the role of FDI in correcting BoP of host country?
A. FDI replaces imports from foreign country thus, it corrects current account deficit
B. Foreign subsidiaries export goods tho their parents company, which results in exports of the host country
C. Both A and B
D. None of the above
Answer: Option C
Related Questions on Foreign Trade Policy
A. Importing
B. Exporting
C. Franchising
D. Joint Ventur
Foreign trade helps each country to make . . . . . . . . use of its natural resources.
A. optimal
B. loss
C. better
D. none of these
The effects of foreign trade on the domestic economy maybe at
A. Micro level
B. Macro level
C. Both A and B
D. Neither A nor B
A. Chief controller of Imports and Exports
B. Director General of Foreign Trade
C. Director General of Commercial Intelligence
D. Chief Controller of Foreign Trade

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