Question

Using the FDI Confidence Index (you can download the summary at the website), analyze the countries that are ranked in the top 10 using course concepts. What characteristics do they share in terms of their monetary stability and international debt that contribute to FDI attractiveness?

Answer 1

Countries in the top 10 of the FDI Confidence Index share characteristics of monetary stability and low international debt, making them attractive for FDI.

Step-by-step explanation:

The countries ranked in the top 10 of the FDI Confidence Index share certain characteristics in terms of monetary stability and international debt that contribute to their attractiveness for foreign direct investment (FDI).

One characteristic is strong monetary stability, which means these countries have low inflation rates and stable exchange rates. This provides a favorable environment for investors because it minimizes the risk of currency devaluation and helps maintain the value of their investments.

Another characteristic is low international debt levels. Countries with low levels of international debt are seen as more financially stable and less likely to default on their debt. This makes them attractive to foreign investors who want to ensure the safety of their investments.