Foreign Investment

Multiple Choice

Foreign investment

A) allows a country only to grow when it does not compete with its domestic savings.
B) allows a country to enjoy faster growth than would be possible if it were forced to rely solely on its domestic savings.
C) only allows as much growth as desired by foreign management.
D) usually replaces domestic savings leading to excessive external indebtedness.
E) is usually the least stable and most burdensome for host countries.