In what way does foreign investment contribute to economic development?(1 point)

Question

Responses

Foreign investment provides capital to foreign countries that may be used in production.
Foreign investment provides capital to foreign countries that may be used in production.

Foreign investment provides monetary aid to countries suffering humanitarian crises.
Foreign investment provides monetary aid to countries suffering humanitarian crises.

Foreign investment provides development loans and grants that assist developing nations.
Foreign investment provides development loans and grants that assist developing nations.

Foreign investment provides education to governments and populations.

Answer 1

The most accurate response regarding how foreign investment contributes to economic development is:

Foreign investment provides capital to foreign countries that may be used in production.

Foreign investment, such as foreign direct investment (FDI), typically brings in capital that can be used to establish or expand businesses, enhance infrastructure, and create jobs, which in turn helps stimulate economic growth and development in the host country.