Question
How can FDI help a country achieve a current account surplus? (a) If the FDI is a substitute for exports of goods or services, the
How can FDI help a country achieve a current account surplus?
(a) If the FDI is a substitute for exports of goods or services, the effect can be to improve the current account of the host country's balance of payments.
(b) When the MNE uses a foreign subsidiary to import goods and services to other countries.
(c) When the MNE uses a foreign subsidiary to export goods and services to other countries.
(d) If the FDI is a substitute for imports of goods or services, the effect can be positive on the current account of the home-country's balance of payments.
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