The benefits of net capital inflows to a country include all of the following except:
A)a larger pool of total savings.
B)a higher rate of investment in new capital.
C)a potentially higher growth rate.
D)interest and dividend payments owed to foreign investors.

Question

Quizplus · Accepted Answer

When net capital flows into a country it creates a larger pool of savings, higher rates of investment and potentially higher growth rates. These are good for the country receiving the net capital inflow. The only negative is higher interest and dividend payments to foreigners.

The Benefits of Net Capital Inflows to a Country Include