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Foreign direct investment is A

Economics Feb 20, 2023

Foreign direct investment is

A. more important for financing investments in LDCs than domestic saving

B. concentrated heavily among a few middle-income countries

C. short-term, like foreign commercial bank loans.

D. not a way to access new technologies.

Also take into account these!!

1) Of the FDI going to developing countries, half went to ten countries China, Russia, Brazil, and India were among the leaders Sub-Saharan Africa received just 5 percent of the total.

2) Foreign direct investment (FDI) is a long-term investment in which a non-resident entity exerts significant management control (at least 10-percent) over an enterprise in the host
country.

3) For middle-income countries, the largest international capital flow is FDI - larger than foreign bank lending or foreign aid

4) Multinational corporations initiate the majority of FDI in developing countries. (Keep in mind that FDI is small relative to domestic investment in most countries)

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