Foreign Investment in Developing Countries Is Limited for All of the Following

question 42

Multiple Choice

Foreign investment in developing countries is limited for all of the following reasons except:

• A)developing countries lack the infrastructure necessary to attract foreign investment.
• B)it is often viewed in developing countries as exploitive.
• C)developing countries try to control the nature of foreign investment in order to obtain greater benefits from it.
• D)domestic saving in developing countries is too limited.

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Definitions:

Strike Price

The price at which the holder of an option contract can buy (call option) or sell (put option) the underlying asset.

Strike Price

The fixed price that allows the possessor of an option to either acquire (with a call option) or dispose of (with a put option) the base asset.

Put Option

A financial contract giving the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.

Market Price

The present cost at which a product or service is available for purchase or sale in the market.