Role of Investments Quick Check

Question

3 of 53 of 5 Items
Question
In what way does foreign investment contribute to economic development?(1 point)
Responses

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

Foreign investment provides education to governments and populations.
Foreign investment provides education to governments and populations.

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 capital to foreign countries that may be used in production.

Answer 1

The most accurate response regarding the role of foreign investment in contributing to economic development is:

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

Foreign investment typically involves the transfer of capital from one country to another, which can be used to fund production initiatives, infrastructure projects, and various economic activities that drive growth and development.