Which of the Following Is an Implication of Investment from Abroad

question 51

Multiple Choice

Which of the following is an implication of investment from abroad?

• A)Poor countries become poorer because profits go to the foreign owners.
• B)Foreign investment increases the destination country's stock of capital; therefore, it promotes growth.
• C)Foreign investment increases GDP but not GNP.
• D)Foreign investment is unfair because only foreigners benefit from it.

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Definitions:

Expense

A cost or charge that is incurred in the process of generating revenue, typically classified on an income statement.

Liability

A financial obligation or amount owed by an individual or entity, typically representing loans or accounts payable.

Asset

Resources owned or controlled by a business that are expected to produce future economic benefits.

Liability

A financial debt or obligation that an entity is required to pay to another entity in the future.