A Key Reason for Low Foreign Direct Investment in Developing

question 27

Multiple Choice

A key reason for low foreign direct investment in developing nations is:

• A)the presence of tariff and non tariff barriers on imports.
• B)the fear of nationalization of private assets.
• C)the lack of government-operated enterprises.
• D)the high interest rate charged on loans.
• E)the fear of falling inflation rates.

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Definitions:

Significance Level

The probability of rejecting the null hypothesis when it is actually true, used in hypothesis testing as a threshold for determining statistical significance.

Significance Testing

A statistical method used to determine if the relationship between variables is due to chance or is statistically significant.

T-Test

A statistical analysis designed to evaluate whether the average values of two groups differ significantly.

Degrees of Freedom

The number of values in a calculation that are free to vary without violating any constraints.