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AP Human Geography
Unit 7 – Industrial and Economic Development
Topic 7.7
How does increased foreign direct investment (FDI) affect developing countries?
It causes rapid decline in GDP for the recipient country.
FDI primarily leads to political instability in receiving countries.
FDI decreases the number of available jobs in host countries.
It typically stimulates economic growth but can also lead to exploitation.
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AP Human Geography - 7.7 Changes as a Result of the World Economy
Key terms
Foreign Direct Investment (FDI)
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About Us
About Fiveable
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Careers
Testimonials
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Terms of Use
Privacy Policy
CCPA Privacy Policy
Resources
Cram Mode
AP Score Calculators
Study Guides
Practice Quizzes
Glossary
Crisis Text Line
Request a Feature
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© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
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