Which of the following statements regarding the free market view is true?

Which of the following statements regarding the free market view is true?



A. According to the free market view, MNEs decrease the overall efficiency of the world economy.


B. The free market view argues that FDI is a benefit to both the source country and the host country.


C. According to the free market view, MNEs can never be instruments of economic development, only of economic domination.


D. According to the free market view, FDI is beneficial to the host country of an MNE but it is harmful for the home country of the MNE.


E. The free market view traces its roots to Marxist political and economic theory.



Answer: B. The free market view argues that FDI is a benefit to both the source country and the host country


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