Foreign investment inflows help to mitigate the pressure on the overall

Question

Quizplus · Accepted Answer

Foreign investment inflows directly impact a country's balance of payments by providing the capital needed to finance the gap between a country's domestic savings and its investment needs. This can help to mitigate pressure on the balance of payments by increasing the financial resources available to the country, thereby supporting its international payment obligations without depleting foreign exchange reserves or requiring adjustments in exchange rates.

Foreign Investment Inflows Help to Mitigate the Pressure on the Overall