Spillover effects of FDI benefit host countries because… The foreign investor al
ID: 2816604 • Letter: S
Question
Spillover effects of FDI benefit host countries because…
The foreign investor always hands over its technology to host companies
The foreign investor seeks to preserve its IP
The host country always requires the foreign investor to transfer technology
The local workers can absorb technology from the foreign investor’s operations
The foreign investor always hands over its technology to host companies
The foreign investor seeks to preserve its IP
The host country always requires the foreign investor to transfer technology
The local workers can absorb technology from the foreign investor’s operations
Explanation / Answer
the spillover effects benefit the host countries as the local workers can absorb the technology from the foreign investors operations without entering into a contractual agreement. Absorbing these spliiover effects the host countries can improve prductivity and reduce inefficiency. the human capital can increase it's ability to produce more goods by absorbing the new technology.Better education and training makes workers more efficient anf productivity levels of host countries rises.
best performing industries entering the host countries , provide better innovation and knowledge which can be absorbed by the local people of the host country.
so the corrrect option is option d.
No the forign country will not hand over or transfer technology to host country.
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