Stability of currency must be considered before selecting the location for FDI.

Question

Quizplus · Accepted Answer

Currency stability is an important factor that affects the flow of foreign direct investment in a particular country or region. A stable currency reduces the risk of currency fluctuations, which is a key concern for investors. Therefore, investors tend to prefer locations with stable currencies, as it provides greater certainty and predictability in the investment environment.

Stability of Currency Must Be Considered Before Selecting the Location