Answer to Question 1
Ideal Answer: The ideal answer should include:
1. Define foreign investment.
2. Discuss how foreign investment can be both a positive and a negative, touching on such harmful issues as governmental loss of control that may come with foreign investments by MNC's, and beneficial aspects such as the expansion and creation of industry.
3. Explain how foreign investment can become a consistent benefit, touching on the need for a stable local labor supply, and economic growth in the host country that will sustain demand for goods, as well as consistent local productivity growth.
4. Discuss particular examples of direct investment as a blessing China, South Korea, Taiwan, Hong Kong, Turkey, Argentina, Ecuador, etc.
5. Offer a concise summary and effective conclusion.
Answer to Question 2
Ideal Answer: The ideal answer should include:
1. Provide an outline of the development policies best to pursue as the leader of a developing nation, touching on foreign assistance, technology transfer, aid, export-led growth, and more.
2. Explain the order and details of the steps to be taken in the development strategy.
3. Describe who would be invited in and whose assistance would be taken. For instance, would aid from the IMF be considered a benefit or a detriment?
4. Evaluate why a given entity would be welcome and another not so. Again, IMF conditions may be considered unwelcome due to their restrictiveness.
5. Provide a concise and effective conclusion.
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