Question

Most developing countries do not have access to the technology available in developed nations, but these developing nations need technology to create new jobs and stimulate the economy. Which aspect of inward FDI do these developing nations rely on to have access to needed technology

Answer 1

Answer: c. resource-transfer effects

Explanation:

Foreign Direct Investment refers to when a company from a foreign country actually owns a business in the local country or at least controls a significant portion of it.

If the foreign country is a Developed nation and the local country is a Developing nation, the foreign company would bring with it resources to build their local investment and make it more competitive.

Resources such as capital and technology would be brought in that can then be used by the Developing country to its own benefit.