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.

There are two basic strategies for locating manufacturing facilities.These are:

(a)concentrating them in the optimal location and serve the world market from there and, concentrate them in markets that are parts of major trade blocks.

(b)locate at least one manufacturing facility in each continent in which the firm is active and, concentrate manufacturing at an optimal location.

(c)concentrate them in the optimal location and serve the world market from there and, decentralising them in various regional or national locations that are close to major markets.

(d)concentrate them in markets that are part of major trade blocks and, centralising them at a single location.

A ______ eliminates trade barriers between member countries and adopts a common external trade policy.

(a)free trade area

(b)global union

(c)tariff union

(d)customs union