3
lesson pretestMultiple Choice

Pretest

Question 3 • CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY

How might foreign investment be problematic for a transitioning economy?

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

Explanation

Foreign investment can bring money, jobs, and technology, but it may also give investors from another country influence over important businesses or economic decisions. Adjusting to that influence can be difficult for a transitioning economy. Foreign investment does not automatically require adopting another country’s currency or lead to a foreign government taking control.

AI-written and checked against the verified answer.

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