Why are international investors who have invested in developing nations favoring foreign direct investment and portfolio investment over loans?
A) The process of making loans is usually more difficult for investors to do than foreign direct and portfolio investment.
B) The interest rate charged on the loans is usually lower than what can be earned in the U.S.
C) It is illegal for banks to make loans to foreign firms.
D) Investors have an aversion to owning dead capital and want to make sure that the resources they own do not become dead capital.
Correct Answer:
Verified
Q106: Which of the following is NOT a
Q107: Portfolio investment is defined as
A) the purchase
Q108: When investment occurs in developing nations
A) investors
Q109: Portfolio investment means buying
A) less than 10
Q110: The World Bank has extended a loan
Q112: The acquisition of more than 10 percent
Q113: An international financial crisis is
A) when at
Q114: The primary motivation for private foreign investment
Q115: The purchase of less than 10 percent
Q116: An international financial crisis is most often
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