Asked by Michael Morales on Jul 06, 2024

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A recommended policy for developing countries to stimulate economic growth would be

A) abolishing central banks.
B) more central planning by government.
C) encouraging more direct foreign investment.
D) expanding employment in state industries.

Direct Foreign Investment

Investment made by a company or entity based in one country, into a company or entity based in another country.

State Industries

Industries that are owned, controlled, or heavily regulated by government entities to provide public services or goods.

Central Banks

National institutions tasked with overseeing a country's currency, money supply, and interest rates, and supervising its banking system.

  • Identify and analyze the impact of direct foreign investment on economic growth in developing countries.
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YM
Yesenia MendezJul 11, 2024
Final Answer :
C
Explanation :
Encouraging more direct foreign investment can bring in much-needed capital, technology, and expertise to developing countries, boosting economic growth. Additionally, it can create jobs and provide access to new markets for domestically produced goods and services. Abolishing central banks or expanding employment in state industries can lead to inefficiencies and bureaucratic burdens, while more central planning by government can stifle innovation and entrepreneurship.