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Which of these statements is not true?

A) The industries developed by communist governments were not suited for world competition they encountered in the 1990s.
B) In the early and mid-1990s, there was a steep drop in agricultural and industry productivity.
C) Food processing and tobacco processing have not maintained standards high enough to compete in Western Europe.
D) The rate of foreign investment is higher than that in other countries of Eastern Europe.

User Powisss
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Final answer:

The statement that is not true is D) The rate of foreign investment is higher than that in other countries of Eastern Europe, as it inaccurately generalizes the situation in Eastern European countries, failing to recognize the different levels of success in transitioning to private ownership and attracting foreign investment.

Step-by-step explanation:

The statement among the options that is not true when considering the economic transition from communism and the subsequent changes in Eastern Europe after the 1990s is: D) The rate of foreign investment is higher than that in other countries of Eastern Europe. This statement can be refuted with regards to the Czech Republic, which underwent a more rapid and effective transition from state control of industry to private ownership compared to Slovakia. On the other hand, Slovakia faced greater adversity with the move away from defense industries and has consistently higher unemployment rates.

While it is true that industries developed under communist regimes found challenges in global competition and there was a drop in productivity across various sectors in the early to mid-1990s, food processing and tobacco processing have not universally failed to maintain standards for competition in Western Europe. Instead, we see variability in this success across different countries within Eastern Europe. Thus, option D is not accurate as it suggests a uniform condition regarding foreign investment which does not reflect the economic nuances of each country.

User Iman Roosta
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