Asked by Brandy Thatcher on May 05, 2024

verifed

Verified

Developing countries:

A) do not benefit from foreign aid.
B) do not benefit from private investment.
C) generate less than half of their annual flow of foreign exchange from exports.
D) must acquire foreign exchange in order to pay for imports.
E) need to decrease labor productivity.

Developing Countries

Nations with a lower living standard, underdeveloped industrial base, and a low Human Development Index (HDI) relative to other countries.

Foreign Aid

Financial or material assistance given by one country to another, often to help with development projects, disaster relief, or economic stabilization.

Private Investment

The expenditure by private sector entities on assets to increase their capacity or efficiency, as opposed to public or government investment.

  • Investigate the consequences of global trade and remittances for emerging economies.
verifed

Verified Answer

MP
Maharsh PatelMay 11, 2024
Final Answer :
D
Explanation :
Developing countries need to acquire foreign exchange to pay for imports, such as machinery, technology, and other goods and services that are essential for development and growth. This is a fundamental aspect of international trade and economic policy.