A Country Rejects FDI Proposals in Certain Industries

question 3

Multiple Choice

A country rejects FDI proposals in certain industries. It does so because the tangible advantages of such investments are lesser than potential costs like loss of employment and reduction of overall well-being. However, it aggressively pursues inviting foreign investments in sectors like infrastructure, education, and healthcare because of the benefits that accrue with them. Which political view of FDI is discussed in this example?

• A) The pure market view
• B) The free market view
• C) The radical view
• D) The pragmatic nationalist view

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Definitions:

Voidable

Voidable refers to a legal status denoting that an agreement or transaction can be affirmed or rejected at the discretion of one of the parties involved.

Ratification

The act of officially approving or confirming an action, agreement, or decision, often after the fact, to make it valid and binding.

Depreciation

The reduction in the value of an asset over time, particularly due to wear and tear.

Ratify

To formally approve or confirm an agreement or treaty, making it officially valid.