Mc Graw W TU Starting A T Case Status... Login | T. Ro... Saved The US eco... men jogger... https://uwm... Sign in Chapter 8-FDI-Connect Assignment 7 Home countries can adopt policies designed to both encourage and restrict FDI. Host countries try to attract FDI by offering Incentives and try to restrict FDI by dictating ownership restraints and requiring that foreign multinational enterprises (MNE) meet specific performance requirements. Roll over each term to read its description. Determine whether the scenario represents a benefit or cost to the home or host country, and then drag it to the appropriate place on the chart. FDI as a substitute for direct export FDI as a substitute for imports of goods and services Monopolization of markets Initial capital outflow to finance FDI Increase in direct and indirect employment HOST-COUNTRY BENEFIT HOST-COUNTRY COST HOME-COUNTRY BENEFIT HOME-COUNTRY COST The inward flow of foreign eamings Demand creation for home-country export Outflow of earnings from a foreign subsidiary Loss of economic independence Transfer of new technology Help