In which way can the source country's balance of payments benefit from an FDI made in a foreign country?

In which way can the source country's balance of payments benefit from an FDI made in a foreign country? 









A. From cash outflow during the initial investment to finance the FDI

B. If the purpose of the foreign investment is to serve the home market from a low-cost production location

C. From the inward flow of foreign earnings

D. If FDI is a substitute for direct exports











Answer: C


International Business

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