Which of the following is NOT a strategic goal of foreign direct investment (FDI)?

• A. Acquisition of advanced technology
• B. Securing natural resources
• C. Access to new markets
• D. Improving domestic unemployment rates

Answer: (D)

Verified step by step guidance

1. Step 1: Understand the concept of Foreign Direct Investment (FDI). FDI occurs when a company or individual from one country makes an investment into business interests located in another country, typically to gain some strategic advantage.
2. Step 2: Identify common strategic goals of FDI. These usually include acquiring advanced technology, securing natural resources, and accessing new markets. These goals help firms expand their competitive advantage internationally.
3. Step 3: Analyze the option 'Improving domestic unemployment rates.' While improving unemployment may be a desirable social outcome, it is generally not a direct strategic goal of FDI from the investing firm's perspective.
4. Step 4: Compare all options and recognize that the first three are direct strategic business objectives of FDI, whereas improving domestic unemployment rates is more of a macroeconomic policy goal rather than a firm-level strategic goal.
5. Step 5: Conclude that the option 'Improving domestic unemployment rates' is NOT a strategic goal of FDI, as it does not directly benefit the investing firm’s competitive position or resources.