If foreign investment increases significantly, the most likely effect is:

CA Foundation · Business Economics · MTP · September 2026
If foreign investment increases significantly, the most likely effect is:
(A) A. capital inflow and technology transfer
(B) B. trade isolation
(C) C. decline in productivity
(D) D. reduction in employment

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. capital inflow and technology transfer

Topics: International Trade

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