Discuss the Rationales for Foreign Financing of Investment in Developing

question 152

Essay

Discuss the rationales for foreign financing of investment in developing actions and explain how developing countries benefit from international capital investment.

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Definitions:

Price

The price tag attached to purchasing a good or service.

Consumer's Income

The total amount of money earned by a consumer, determining their purchasing power and affecting their demand for goods and services.

Corner Solution

In optimization problems, a situation where the optimal choice for a variable is at the limit or bound of its possible values, rather than in the interior of the choice set.

MRS

The speed at which a consumer is prepared to exchange one product for another while keeping the same degree of happiness or utility.