Governments whose country imports a lot encourage long-term foreign investment in their countries because it helps balance their balance of payments.

Question

Quizplus · Accepted Answer

Long-term foreign investment can help balance a country's balance of payments by providing a stable inflow of capital, which can offset the outflow of capital used for imports. This investment can also stimulate economic growth, create jobs, and increase foreign exchange reserves, further contributing to a balanced balance of payments.

Governments Whose Country Imports a Lot Encourage Long-Term Foreign Investment