SIX South Asian countries have eliminated barriers to trade within the group. They have decided on a common external trade policy and will allow people and factors of production to move freely between them, They represent ain) command economy O economic union. O common market O efficient market fron trade area, QUESTION 17 Which of the following situations represents an INDIRECT effect of FDI on employment in a host country? ()A Greek seatood company, Poseidon's Daughters, has entered the Peruvian market and has hired several Peruvians in its shellfish processing factones. The US subsidiary of Marcedes Bare has brought in managers from Germany to oversee its operations in Konlucky. Data Miner Group, a US market research company with a branch in London, recruits UK stalaticians to conduct research on the UK and EU markets. Chinese employees of an Australian MNE located in Shanghai see a bump in their incomes, which has contributed to home building and renovation in Shanghai, along with more home construction jobs Q General Motors periodically sends US executives to its Canadian and Mexican operations to train managers in those countries. QUESTION 18 Moonrise Bakeries Lid- enters new international markets through greenfield investments and keeps full control of managing operations in those locations rather than hiring local managers. This approach to FDI can be risky because of the potential problems from sharing a valuable technological know-how with a polential competitor. @ an increase in transporintion costs, especially for those products that have a low value-to-weight ratio the possibility of an increase in trade barriers such as import tariffs or quotas, (0) doing business in a different culture where business practices may be unfamiliar. increased production costs