Practicing Success
By supporting developing countries in setting up of capital intensive industries, the industrial nations ensure _________. |
Their monopoly Markets for their finished products Export of minerals from developing countries Human welfare and ecological balance |
Markets for their finished products |
The correct answer is Option (2) → Markets for their finished products. Extent of foreign investment: Foreign investment can boost trade in developing countries which lack in capital required for the development of mining, oil drilling, heavy engineering, lumbering and plantation agriculture. By developing such capital intensive industries in developing countries, the industrial nations ensure import of food stuffs, minerals and create markets for their finished products. This entire cycle steps up the volume of trade between nations. |