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Question 3 Based on your reading and understanding, explain the effect of FDI on domestic investment and government revenue. Provide appropriate examples for each case.

Question 3

Based on your reading and understanding, explain the effect of FDI on domestic investment and government revenue. Provide appropriate examples for each case.

[10 Marks]

Question 4

Explain how FDI can cause deterioration the term of trade of a host country.

[10 Marks]

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