A key reason for low foreign direct investment in developing nations is:
A) the presence of tariff and non tariff barriers on imports.
B) the fear of exploitation of domestic resources by foreign owners.
C) the lack of government-operated enterprises.
D) the high interest rate charged on loans.
E) the fear of falling inflation rates.

Question

Quizplus · Accepted Answer

Many developing nations fear that foreign investors will exploit their domestic resources and labor force. This fear often leads to hesitation in attracting foreign direct investment. Tariff and non-tariff barriers, lack of government-operated enterprises, high interest rates, and fear of falling inflation rates can also be barriers to foreign investment, but they are not the main reason for low foreign direct investment in developing countries.

A Key Reason for Low Foreign Direct Investment in Developing