FDI

question 17

Multiple Choice

FDI:

• A) makes financing the current account harder.
• B) makes financing the current account easier.
• C) reduces the size of the financial account.
• D) is created by World Bank loans.
• E) none of the above

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Definitions:

Specialize

To focus on a particular area of production or work, allowing for increased efficiency and expertise in that area.

Scarcity of Resources

The fundamental economic problem of having seemingly unlimited human wants in a world with limited resources.

Necessity of Choice

An economic principle stating that due to scarce resources, individuals and societies must make decisions on how to best allocate those resources.

Self-Sufficient

The quality or condition of being able to fulfill all one's needs without reliance on external assistance.