Which of the following is not a reason foreign investment can be economically beneficial?
A) It increases the GDP of the host country by giving it access to additional resources.
B) It increases the GDP of the investing country by providing it with ways to earn higher returns on its capital.
C) It makes the world a more efficient place by moving capital from places with low returns to places with high returns.
D) It always leads to a higher interest rate.

Question

Quizplus · Accepted Answer

Foreign investment does not always lead to a higher interest rate, as this depends on various factors such as the level of competition in the market, the monetary policies of the host country, and the overall economic situation. The other options are all valid reasons for foreign investment to be economically beneficial.

Which of the Following Is Not a Reason Foreign Investment