When a country becomes more attractive for foreign investment,we would expect a(n):

Question

Quizplus · Accepted Answer

When a country becomes more attractive for foreign investment, there is an increase in demand for that country's currency as foreign investors need to purchase the domestic currency to invest in the country. This increase in demand causes the exchange rate to appreciate, making the domestic currency more expensive in relation to other currencies.

When a Country Becomes More Attractive for Foreign Investment,we Would