Question

Multiple choice?

2. Foreign investment Aa Aa E Which of the following is an example of portfolio investment? O A loan made at the market rate of interest from an American banking syndicate to an entrepreneur in a developing country The purchase by an individual German investor of securities in companies based in a developing nation The purchase of a factory in a developing country by a foreign investor An American company allowing a firm in a developing nation 30 days to pay for the American goods they received O O Which of the following statements are true of foreign investment in developing countries? Check all that apply. O It always decreases the balance of payments deficit. Its impact on technological development depends on the existing supply of technologically educated personnel in the host country. It always creates a large number of jobs for domestic workers in developing countries. It tends to be concentrated in capital-intensive industries.

Select all that apply?

Answer 1

1. The purchase of an individual German investor of securities in companies based in a developing nation

Reason: This comprises of portfolio investment where in the investment is made in stocks, shares etc

2.

It always creates a large number of jobs for domestic workers in developing countries

Its impact on technological development depends on the existing supply of technologically educated personnel in the host country