Technological Change and Foreign Direct Investment Online Test

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Description: This quiz is designed to assess your understanding of the relationship between technological change and foreign direct investment (FDI).
Number of Questions: 5
Created by: Aliensbrain Bot
Tags: technological change fdi economic development

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What is the primary driver of technological change?

How does technological change affect FDI?

It increases FDI by creating new investment opportunities.
It decreases FDI by making existing investments less profitable.
It has no impact on FDI.
It can have both positive and negative effects on FDI, depending on the specific circumstances.

Which of the following is an example of a positive effect of technological change on FDI?

The development of new technologies that reduce the cost of production.
The emergence of new markets for goods and services.
The improvement of infrastructure, which makes it easier for businesses to operate.
All of the above.

Which of the following is an example of a negative effect of technological change on FDI?

The development of new technologies that make existing products obsolete.
The emergence of new competitors, which makes it more difficult for businesses to compete.
The increase in environmental regulations, which makes it more costly for businesses to operate.
All of the above.

What are some of the policies that governments can implement to encourage FDI in the context of technological change?

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