Question:

Foreign direct investment:?

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I. Increases the domestic country's stock of capital and therefore can increase productivity

II. Can bring new technologies to poorer countries

III. Causes some of the income earned from the investment to exit the country that received the investment

A. I and III only

B. II only

C. I only

D. I, II, and III

E. II and III only

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2 ANSWERS


  1. E. II and III only


  2. D. I, II, and III

    I, II and III are true for foreign direct investments.

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