33. When investment occurs in developing nations A. Investors hope to gain signi

ID: 1097188 • Letter: 3

Question

33. When investment occurs in developing nations

A. Investors hope to gain signigiciant returns on their investment and local residensts hopw to gain higher rates of economic growth

B. Higher rates of economic growth are usually not achieved

C. Significant levels of corruption usually occur

D. Government poliicians usually benefit from the illegal payments made to secure the investment

34. Adverse selection inhibits the financing of global growth because

A. Firms sometimes have trouble determinngwhether they need funds or not

B. If investors have trouble identifying high-risk firms they may be unwilling to lend funds to creditworthy firms

C. There is the possibility that the funds are used for riskier behavior than the lender agreed to

D. There are diferences between financing using loans, portfolio investment and foreign direct investment

1. C

2. B

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