17
QuizMultiple Choice

Economic Development

Question 17 • * HSA 26-27 Economics

How might foreign investment be problematic for a transitioning economy?

Answer
A
Foreign investment can temporarily slow economic growth.
B
It may be difficult to adjust to another nation’s influence.
C
A foreign government may seize control of the country.
D
The transitioning economy must adopt a foreign currency.

Explanation

Foreign investment can bring needed money and resources, but it can also give foreign businesses or investors greater influence over decisions in the transitioning economy. Adjusting to that outside influence may be difficult; investment does not necessarily mean a foreign government will take control or that the country must adopt another currency.

AI-written and checked against the verified answer.

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