‘A foreign direct investment (FDI) is an investment made by a foreign entity in the equity of a domestic company’.
Accordingly, which of the following countries has the BEST potential for attracting FDI?
Country A has a stable and democratic government that offers incentives and protection to foreign investors.
Country B has a volatile and corrupt government that imposes high taxes and restrictions on foreign investors.
Country C has a weak and dependent government that faces external threats and pressures from foreign powers.
Country D has a strong and nationalist government that discourages foreign involvement and promotes domestic industries.
Answer by student
So, the correct answer is (A): Country A has a stable and democratic government that offers incentives and protection to foreign investors.