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 nationalization of private assets.
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

One of the main concerns for foreign investors in developing nations is the fear of nationalization, which is the government taking control of private assets. This can result in the loss of the investor's property and can discourage investment. Tariff and non-tariff barriers, lack of government-operated enterprises, high interest rates, and falling inflation rates are also potential obstacles to foreign direct investment, but the fear of nationalization is a key reason for low investment.

A Key Reason for Low Foreign Direct Investment in Developing