1. FDI often creates jobs in the host country. Discuss the direct and indirect effects of jobs creation in the host country.

2. From a home country perspective, FDI can have a negative impact on the balance of payments. Discuss.

indirect effects of fdi on employment in a host country arise when:

Is there any economic gain for a host country if an MNC offshore some of its activities to the host country? Is there any economic gain for a home country if an MNC from a home country offshores some of its activities abroad?

Discuss the impact of a surplus in the balance of payments of a country on its domestic currency if the country has a fixed exchange rate regime.