Because foreign direct investment inflows are recorded as subtractions to the balance of payments, a nation is negatively affected from an initial foreign direct investment inflow.

Question

Quizplus · Accepted Answer

Foreign direct investment inflows are recorded as additions to the capital account and not as subtractions to the balance of payments; therefore, they have a positive impact on a nation's economy.

Because Foreign Direct Investment Inflows Are Recorded as Subtractions to the Balance