Until Recently, the Trend for Many Developing Countries Has Been

question 9

Multiple Choice

Until recently, the trend for many developing countries has been:

• A)to be quite open to foreign investment.
• B)to encourage foreign direct investment but discourage foreign portfolio investment.
• C)to encourage foreign portfolio investment but discourage foreign direct investment.
• D)to seal themselves off from foreign investment.

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Definitions:

Medium Of Exchange

A medium of exchange is an intermediary instrument used to facilitate the sale, purchase, or trade of goods between parties.

Commodity Money

Money that has intrinsic value because it is made of materials that hold value, like gold or silver.

Fiat Money

Currency that a government has declared to be legal tender, despite it having no intrinsic value and not being backed by physical commodities.

Intrinsic Value

The inherent worth of an asset, independent of its market price, often based on what is fundamentally valuable about the asset.