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Global capital-flows to developing countries increased significantly during the nineties. In view of the East Asian financial crisis and Latin American experience, which type of inflow is good for the host country

Global capital-flows to developing countries increased significantly during the nineties. In view of the East Asian financial crisis and Latin American experience, which type of inflow is good for the host country?

(a)

Commercial loans

(b)

Foreign Direct Investment

(c)

Foreign Portfolio Investment

(d)

External Commercial Borrowings

Answer:

(b)

Explanation