Respuesta :

When a foreign subsidiary purchases a sizable portion of its raw materials.

Which could have a negative impact on a host country's balance of payments?

The stated negative economic effects of FDI, particularly in the heavy industries, include balance of payments deficits, less domestic R&D, diminished competition, crowding out of domestic enterprises and lower employment.

Which of the following scenarios would an increase in FDI help the host country's current account and balance of payments?

When jobs are created as a result of FDI in local suppliers as well as when employees of the MNE boost their local spending, these are considered indirect benefits of FDI.

To Know more about raw materials.

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