The flow of imports that foreign direct investors often bring with them affect the host country in a variety of ways. Which of the following is a negative effect of foreign direct investment by multinational companies?
a. Increase in average wage rates
b. Decline in domestic sales
c. Preventing possible partnerships
d. Weakening of international trade position
Question 2
Counterpurchase requires a company to fulfill its countertrade requirements by purchasing products within a country unrelated to its primary business.
a. True
b. False
Indicate whether the statement is true or false
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