Best answer: Why is foreign direct investment sometimes controversial in developing countries quizlet?

Why is foreign direct investment sometimes controversial in developing countries? Creditors often step in with new loans and aid to alleviate a debtor country’s financial crisis. -Because, if such a crisis were allowed to broaden and deepen, it could spread to other nations and eventually hurt the creditors themselves.

Why do developing countries allow foreign direct investment quizlet?

Why do developing countries allow foreign direct investment? They need capital in order to develop, and FDI is often the best source.

Why is lending capital to foreign countries controversial in the lending countries quizlet?

Why is lending capital controversial in lending countries? Workers and firms in the lending nation may resent that money going abroad. They may have to bail out these borrowers, just causing a lot of conflicts.

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What could the impact of CFTA be on Africa quizlet?

The potential impact of the CFTA includes boosting intra-Africa trade, manufacturing exports, job creation for youth, and poverty alleviation. The potential for the CFTA is big for both structural transformation and poverty alleviation in Africa.

Why do countries often restrict trade quizlet?

Countries often restrict trade through tariffs, quotas, sanctions, or embargos. Trade restrictions can protect domestic industries, save jobs, bring in revenue for a government, and help a country attain a political or social goal. … Often countries form trade agreements.

Why is foreign direct investment sometimes controversial in developing countries group of answer choices?

Why is foreign direct investment sometimes controversial in developing countries? Creditors often step in with new loans and aid to alleviate a debtor country’s financial crisis. -Because, if such a crisis were allowed to broaden and deepen, it could spread to other nations and eventually hurt the creditors themselves.

Why do developing countries allow foreign direct investment?

FDI allows the transfer of technology—particularly in the form of new varieties of capital inputs—that cannot be achieved through financial investments or trade in goods and services. FDI can also promote competition in the domestic input market.

Why can sovereign lending be controversial in the borrowing countries?

Why is borrowing foreign capital controversial in the borrowing countries? The repayment of loans requires policies that reduce the incomes of those who did not directly benefit from the loans.

Why are there conflicts of interest involved in international finance?

Why are there conflicts of interest involved in international finance? Borrowers and lenders disagree over how the benefits from loans and investments should be divided. … Often when banks make bad loans, their governments bail out the banks with the taxpayers’ money.

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What is foreign direct investment quizlet?

foreign direct investment. occurs when a firm invest directly in new facilities to produce and/or market in a foreign country, they are multinational enterprise. greenfield investments. the establishment of a wholly new operation in a foreign country.

What five factors hinder the development of manufacturing industries in tropical Africa?

high demand for products; inadequate skilled labour; availability of raw materials; insufficiency of high level technology.

Why was controlling the means of production the main cause behind the colonization of Africa?

The reasons for African colonisation were mainly economic, political and religious. During this time of colonisation, an economic depression was occurring in Europe, and powerful countries such as Germany, France, and Great Britain, were losing money.

Why is industrialization bad?

Industrialization typically leads to the migration of workers to cities, automation and repetitive tasks. … Rapid urbanization brought on by industrialization typically leads to the general deterioration of workers’ quality of life and many other problems for society, such as crime, stress and psychological disorders.

What are three reasons countries restrict trade quizlet?

Three reasons for trade restrictions are National security, Infant industry argument, anti-dumping.

What are three reasons countries restrict trade?

Governments three primary means to restrict trade: quota systems; tariffs; and subsidies.

Why would a country change its interest rate quizlet?

Why would a country change its interest rate? Increasing interest rates can lead to an appreciation of the currency. … The price of a national currency relative to other national currencies.