Why Is Foreign Direct Investment Sometimes Controversial in Developing Countries

question 2

Multiple Choice

Why is foreign direct investment sometimes controversial in developing countries?

• A)People in developing countries prefer that their own multinational corporations invest domestically rather than in richer countries.
• B)Multinational corporations lend money to local governments at high interest rates.
• C)Developing countries think multinational corporations keep too much of the profit from their investments.
• D)Multinational corporations help developing countries develop infrastructure.

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Definitions:

Reactive Power

The portion of electricity that oscillates between the source and load, stored and discharged by inductive or capacitive components, not converted to work.

Inductive Reactance

The opposition that an inductor presents to the change in current flow due to its stored magnetic energy, expressed in ohms.

Parallel Circuit

An electrical circuit in which components are connected across common points or junctions to provide multiple paths for current to flow.

Inductive Reactance

The opposition that an inductor presents to alternating current, due to the inductor's tendency to resist changes in current flow, measured in Ohms (Ω).