Question

Sovereign wealth funds (SWFs) are a fast-growing form of foreign direct investment. The size of these funds and the fact that they are investments from government coffers of other nations might be a cause for concern. More specifically, some fear __________.SWFs that did not get to invest in multinational corporations will retaliate with embargoesthese funds will go bankrupt if spread too thinthe governments who offer these funds may obtain sensitive technologies or gain control of strategic resourcesthese investments are strictly a trend that can be pulled away from large corporations without any repercussion at any time

Answer 1

Answer:

The correct answer is: the governments who offer these funds may obtain sensitive technologies or gain control of strategic resources

Explanation:

A sovereign investment fund 1 or FSI is a state-owned investment vehicle that controls a portfolio of national and international financial assets. Generally, capital comes from the export of raw materials, such as gas or oil, and its investments are made up of bonds, stocks, financial derivatives, although they also have other types of investments, such as real estate. Because of the credit crunch caused by the 2007 crisis, the FSIs have acquired media notoriety in the bailouts of major banking groups listed on Wall Street such as Citigroup or Merrill Lynch, bringing to light their substantial financial resources. The largest, the Abu Dhabi Investment Authority (ADIA), manages assets estimated at $ 875,000 million, about 3 times the Swiss GDP in 2007. The taking of positions in sectors considered strategic - such as banking - and the opacity of its management worries some governments and international organizations, which begin to limit and regulate the room for maneuver of the FSI.