What is most likely to result from foreign direct investment in a developing economy?

A.
an improvement in the developing economy's trade balance
B.
an increase in the developing economy's net investment income
C.
a reduction in the developing economy's government tax revenue
D.
a reduction in wage levels in the developing economy
Economics
IGCSE&ALevel
CAIE
Exam No:9708_w24_qp_33 Year:2024 Question No:28

Answer:

A

Knowledge points:

11.5.4.1 definition of FDI
11.5.4.2 consequences of FDI
11.5.5.1 causes of debt
11.5.5.2 consequences of debt

Solution:

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