CFA Practice Question

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CFA Practice Question

Which of the following is NOT considered to be a benefit of capital inflows?

A. Capital can be invested to earn the highest return.
B. Long-term investment by foreign firms can bring in new technology, skills, and management practices.
C. Domestic firms unable to compete will likely be forced to exit the market.
Correct Answer: C

On the other hand, increased competition from foreign firms in the market may force domestic firms to be more efficient.

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