Strong investment opportunities at home indicate that there are potentially high returns on investments within the country. Therefore, investing more at home can lead to further economic growth and development. Investing less abroad also suggests that there may be fewer opportunities for productive investments in other countries.

Solved

Countries with

Question 12

Multiple Choice

Countries with

A) strong investment opportunities should invest little at home and channel their savings into more productive investment activity abroad.
B) strong investment opportunities should invest more at home and less abroad.
C) weak investment opportunities should invest more at home.
D) weak investment opportunities should invest little abroad.
E) countries with productive investment should invest exclusively at home.

Correct Answer: