Most developing countries do not have access to the technology available in developed nations, but these developing nations need technology to create new jobs and stimulate the economy. Which aspect of inward FDI do these developing nations rely on to have access to needed technology?
A) balance-of-payments effects
B) employment effects
C) effects on foreign exchange rate
D) effects on competition
E) resource-transfer effects

Question

Quizplus · Accepted Answer

Developing nations rely on the resource-transfer effects of inward FDI to gain access to technology, as it involves the transfer of technology, skills, and capital from foreign investors to the host country.

Most Developing Countries Do Not Have Access to the Technology