An advantage of direct foreign investment (compared to foreign loans)is that management skill and technological knowledge often accompany such capital flows.

Question

Quizplus · Accepted Answer

Direct foreign investment often involves not just the transfer of capital but also the transfer of managerial skills, technology, and business practices to the host country, which can be a significant advantage over simply receiving foreign loans that do not include these additional benefits.

An Advantage of Direct Foreign Investment (Compared to Foreign Loans)is