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.

Question

Social Studies

Tucker Walls

7 May, 04:22

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.

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Answers (1)

Know the Answer?

Landen · Answer 1

I believe the answer is: It may be difficult to adjust to another nation's influence.

Foreign direct investment is a direct capital that directly injected by corporations from another country into our local businesses.

This capital injection would determine the amount of ownership that foreign organisations had in our economy. More ownership would give foreign countries more influence.

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.