Question

Which one of the following is not a benefit of fdi?
Socio economic development
Stimulation of natural economy
Diversion
Stimulate domestic enterprises

Answer 1

Answer:

stimulate domestic enterprises

Explanation:

diversion

Answer 2

The FDI does not stimulate domestic enterprises.

• The FDI is a foreign direct investment that is received from a foreign country in its currency.
• The FDI focuses on the investments in a different country rather than the investors home country, it can sometimes disturb the domestic companies which lack investments.
• This means that the FDI fail to help domestic enterprise.

The answer is Stimulate Domestic Enterprise.