FDI:
A) makes financing the current account harder.
B) makes financing the current account easier.
C) reduces the size of the financial account.
D) is created by World Bank loans.
E) none of the above

Question

Quizplus · Accepted Answer

FDI (Foreign Direct Investment) is a type of investment where a company based in one country establishes or acquires a business in another country. This can help to finance the current account of the host country by bringing in capital and creating jobs. Therefore, it makes financing the current account easier.