Economics · Foreign Investment
Which of the following is the most likely outcome for a developing country that receives significant foreign investment but lacks skilled labor and strong local businesses?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Foreign investment will seamlessly integrate into and benefit all sectors of the economy.
- 2Local firms will always outcompete multinational corporations, regardless of domestic conditions.
- 3The country risks remaining stuck as a supplier of primary commodities, facing increased inequality and vulnerability.✓
- 4The country will quickly achieve sustainable and balanced economic growth.
Correct answer
The country risks remaining stuck as a supplier of primary commodities, facing increased inequality and vulnerability.
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