An increasing share of the private capital ﬂows to DVCs in recent years has been in the form of
A) interest-free government loans.
B) educational and training assistance.
C) direct foreign investment.
D) bank loans.

Question

Quizplus · Accepted Answer

The increasing share of private capital flows to DVCs in recent years has primarily been in the form of direct foreign investment, which refers to investments made by companies or individuals from one country into another country. This investment can take the form of mergers and acquisitions, joint ventures, or greenfield investments. Interest-free government loans and educational and training assistance are not typically considered forms of private capital flows, and while bank loans may be a source of financing for DVCs, they do not comprise the majority of private capital flows to these markets.

An Increasing Share of the Private Capital ﬂOws to DVCs