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 exploitation of domestic resources by foreign owners.
c. the lack of government-operated enterprises.
d. the high interest rate charged on loans.
e. the fear of falling inflation rates.
Question 2
Ceteris paribus, an increase in the price of a good will cause the:
a. quantity demanded of the good to increase.
b. quantity supplied of the good to decrease.
c. supply of the good to increase.
d. consumer surplus derived from the good to decrease.
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