nvestment from abroad Select one: a. is a way for poor countries to learn the state-of-the-art technologies developed and used in richer countries. b. is viewed by economists as a way to increase growth. c. often requires removing restrictions that governments have imposed on foreign ownership of domestic capital. d. All of the above are correct.

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The correct option is (d); All of the above are correct.

What is meant by investment from abroad?

A foreign direct investment (FDI) occurs when a business or investor from outside the country buys a stake in the company.

The phrase typically refers to a commercial decision to buy a sizable portion of a foreign company or to buy it altogether in order to expand its operations to a new area.

Role of the foreign investment for a country are-

  • FDI enables the transfer of technology that is not possible through financial investments or trade in products and services, notably in the form of new types of capital inputs.
  • The domestic input market can become more competitive with FDI as well.
  • In contrast to heavily regulated economies, open economies provide a qualified workforce and high growth prospects for investors.
  • There is a long-term commitment involved because there are no short-term capital gains goals.
  • FDI increases the manufacturing and service sectors, which leads to job growth and lower unemployment rates in the nation.
  • Increased employment increases earnings and gives the populace greater purchasing power, which strengthens a nation's overall economy.

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Investment from abroad Select one: a. is a way for poor countries to learn the state-of-the-art technologies developed and used in richer countries. b. is viewed by economists as a way to increase growth. c. often requires removing restrictions that governments have imposed on foreign ownership of domestic capital. d. All of the above are correct.

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