Q. Which of the following is not true regarding host government attitudes towards foreign direct investment (FDI)?
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(A)
Host governments may offer incentives to MNCs in the form of subsidies in certain circumstances.
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(B)
Host governments generally perceive FDI as a remedy to eliminate a country's political problems.
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(C)
The ability of a host government to attract FDI is dependent on the country's markets and resources.
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(D)
Some types of FDI will be more attractive to some governments than to others.
✅ Correct Answer: (B)
Host governments generally perceive FDI as a remedy to eliminate a country's political problems.