Developing Countries Do

Multiple Choice

Developing countries do:

A) not compete with one another for foreign investment, because they lack the infrastructure to attract it in the first place.
B) not compete with one another for foreign investment, because they have sufficient domestic saving to finance their investment needs.
C) compete with one another for foreign investment, but this competition is beneficial to developing countries because it insures a more efficient allocation of resources.
D) compete with one another for foreign investment, and this competition reduces the benefits from foreign investment.