Question

How might foreign investment be problematic for a transitioning economy? Foreign investment can temporarily slow economic growth. It may be difficult to adjust to another nation's influence. A foreign government may seize control of the country. The transitioning economy must adopt a foreign currency.

Answer 1

Answer:

It may be difficult to adjust to another nation's influence.

Explanation:

A transitional economy is in the process of moving from a planned economic system to a free market economic system, thus foreign trade relations may become stronger and more influential in the region. In this type of situation, investment in a foreign sector or industry may hinder the transition as it may hinder the justification of influence of nations.

Answer 2

Answer:

B. It may be difficult to adjust to another nation's influence.

Explanation:

On edge 2021