Which of the following statements is true about the changing foreign direct investment picture of the global economy?
A) Throughout the 1990s, the amount of investment directed at both developed and developing nations decreased dramatically.
B) There has been a fall in the share of FDI stock accounted for by developing nations reflecting a declining trend for firms from these countries to invest outside their borders.
C) Among developing nations, the lowest recipient of foreign direct investment has been China.
D) The share of FDI stock accounted for by U.S. firms has been drastically increasing from 1980s.
E) The sustained flow of foreign investment into developing nations is an important stimulus for economic growth in those countries.

Question

Quizplus · Accepted Answer

The statement that the sustained flow of foreign investment into developing nations is an important stimulus for economic growth in those countries is true. The other statements are false. Throughout the 1990s, the amount of investment directed at both developed and developing nations increased. The share of FDI stock accounted for by developing nations has been steadily increasing. China is actually one of the highest recipients of foreign direct investment. The share of FDI stock accounted for by U.S. firms has been decreasing in recent years.

Which of the Following Statements Is True About the Changing