Aid and Foreign Investment

A. lowest among the OECD countries
B. higher currently than it was in the 1960s and 1970s
C. is equivalent to Holland’s aid
D. None of the above statements is true

A. decreasing autonomy of the nation-state involves
B. the increasing international integration of markets for goods services and capital
C. changes of a traditional culture of a country to a western culture
D. giving aid to poor countries to improve their economy politics and social status

A. the transportation and storage cost increased tremendously
B. proponents of basic-needs attainment opposed food-aid
C. U.S farm interests wanted to reduce surplus grain stocks
D. agricultural production suffered excessively due to weather changes

A. the brain drains from LDCs to DCs
B. the price role of political and credit-market risk in many LDCs
C. the law of increasing returns that implies that the marginal productivity of capital is higher in LDCs
D. the fat that the DC capital market is perfectly competitive

I- increasing the LDC’s technological dependence on foreign sources resulting in less technological innovation by local workers
II- Hamper local entrepreneurship and investment in infant industries
III- increase unemployment rates from unsuitable technology
IV- Restrict subsidiary exports when they undercut the market of the parent company
A. I and II only
B. III and IV only
C. I, II and III only
D. I, II, III and IV

I- Finance a savings gap or balance of payments deficit
II- Obtain foreign technology by adapting existing processes
III- Generate appropriate technology by adapting existing processes
IV- Employ domestic labor, especially in skilled jobs
A. I and II only
B. III and IV only
C. I, II and III only
D. I, II, III and IV

A. is technical aid given by IMF
B. is given directly by one country to another
C. is aid with repayment in inconvertible currency
D. is a loan at bankers’ standards

I- equals the absolute value of the balance on capital account
II- is financed by savings
III- is net grants minus remittances
IV- includes goods services and unilateral transfers
A. I and II only
B. II and III only
C. I and IV only
D. None of the above

A. and the dangers of free capital movements for LDCs with poorly developed financial institutions
B. and the dangers of a trade deficit
C. and the external openness of income growth among the poorest 40 percent of LDCs
D. and MNC domination and its effects on income distribution

A. investors are directly involved in managing the operations
B. as in direct investment investors export goods and services abroad
C. investors transfer the technology to local investors
D. investors have no control over operations