Which of the Following Is a Common Argument Against Allowing

question 67

Multiple Choice

Which of the following is a common argument against allowing a foreign firm to operate a business in a developing country?

• A)The foreign firm may gain control over national resources.
• B)Foreign productive expertise may outdistance domestic labor skills.
• C)The foreign firm may increase domestic competition.
• D)Technology may be transferred from industrial countries.
• E)The foreign firm may reduce dependency on domestic imports.

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Definitions:

Loanable Funds

The market where savers supply funds to borrowers, often facilitated by financial institutions, influencing interest rates through supply and demand.

Interest Rate

The proportion of interest a borrower is charged for borrowing money from a lender.

Investment Spending

Expenditures made by entities (individuals, companies, or governments) on capital goods, including buildings, machinery, and technology, to increase productivity.

Saving Incentives

Financial or policy incentives designed to encourage individuals or companies to save money rather than spend it.