High levels of corruption significantly reduce the foreign direct investment,level of international trade,and economic growth rate in a country.

Question

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Studies have shown that corruption has a negative impact on foreign direct investment, international trade, and economic growth. Corruption creates uncertainty, increases transaction costs, and reduces the attractiveness of a country as a destination for investment and trade. Therefore, high levels of corruption significantly reduce the foreign direct investment, level of international trade, and economic growth rate in a country.

High Levels of Corruption Significantly Reduce the Foreign Direct Investment,level