The three sources of private direct investment in developing nations are

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Bank loans, portfolio investments, and foreign direct investments are the three sources of private direct investment in developing nations. Bank loans involve lending by commercial banks, while portfolio investments refer to the purchase of stocks, bonds, and other financial assets of companies in developing countries. Foreign direct investment involves setting up a new enterprise, acquiring an existing enterprise or participating in a joint venture in a developing country. IMF loans and government loans are forms of official development assistance, and Eurobond issues are a means of international borrowing by governments or corporations.

The Three Sources of Private Direct Investment in Developing Nations