A key reason for low foreign direct investment in developing nations is:
a. the presence of tariff and non tariff barriers on imports.
b. the fear of exploitation of domestic resources by foreign owners.
c. the lack of government-operated enterprises.
d. the high interest rate charged on loans.
e. the fear of falling inflation rates.
b
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In the long run, a firm in monopolistic competition will
A) make a negative economic profit, that is, an economic loss. B) make zero economic profit, that is, a normal profit. C) make a positive economic profit. D) None of the above answers is necessarily correct because the amount of the profit or loss depends on the slope of the demand curve.
A cutback in the space program due to a slow economy causes an increase in unemployment among aeronautical engineers. This is an example of
A) cyclical unemployment. B) frictional unemployment. C) seasonal unemployment. D) structural unemployment.