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Why Do Developing Countries Allow Foreign Direct Investment

Question 61

Multiple Choice

Why do developing countries allow foreign direct investment?


A) The World Bank requires it as part of their loan packages.
B) They need capital in order to develop,and FDI is often the best source.
C) They want to break monopolies held by their own domestic firms.
D) Multinational corporations threaten boycotts and trade embargoes if they cannot invest.

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