Most developing countries rely on foreign financing because:
A)their governments are unstable and run on deficits.
B)foreign financing is more reliable than domestic investments.
C)these countries do not generate enough savings to fund investments.
D)investors do not recognize their potential gains.
E)foreign countries are more than willing to invest in developing countries.

Question

Quizplus · Accepted Answer

Developing countries often struggle to generate enough savings to fund their own investments due to a variety of factors like low income levels and underdeveloped financial markets. Therefore, they rely on foreign financing to meet their investment needs.

Most Developing Countries Rely on Foreign Financing Because