What is Foreign Private Investment?
Select one:
a. When western economies buy goods from less developed countries
b. When foreign companies invest in other countries’ economies by building factories or making loan to the country’s government
c. When Americans buy foreign stocks
d. When western economies sell good to less developed countries
https://www.google.com/search?source=hp&ei=5aHAXKiWM4nmsAWkmJ7ICA&q=Foreign+Private+Investment&btnK=Google+Search&oq=Foreign+Private+Investment&gs_l=psy-ab.3..0l7.4165.4165..5434...0.0..0.97.97.1......0....2j1..gws-wiz.....0.0jkphDlnauM
The correct answer is:
b. When foreign companies invest in other countries’ economies by building factories or making loans to the country’s government.
Foreign Private Investment refers to the investment made by private companies or individuals from one country into the economy of another country. It involves the establishment of businesses, purchasing of assets, or making loans to another country's government. This type of investment can bring various benefits to both the investing country and the recipient country. It helps stimulate economic growth and development by creating job opportunities, promoting technology transfer, and increasing productivity.
To determine the correct option, you need to understand the concept of Foreign Private Investment. Looking at the given options, a. talks about western economies buying goods from less developed countries, which does not specifically relate to private investment. c. mentions Americans buying foreign stocks, which is more related to stock investment rather than private investment. d. refers to western economies selling goods to less developed countries, which is related to exports but not private investment.
Therefore, option b. is the most appropriate answer since it specifically describes foreign companies investing in other countries' economies by building factories or making loans to the country's government.