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:

Behavioral Economics

A field of economics that examines the effects of psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions.

Economic Behavior

The study of how individuals, households, and organizations make choices to allocate resources in the midst of scarcity and the effects of these decisions on markets and the economy.

Dictator Game

An experimental economics scenario where one player, the "dictator," determines how to split an endowment between themselves and another player.

Ultimatum Game

A game in economic experiments where two players decide how to divide a sum of money; one proposes the split, and the other can accept or reject it.