Answer to Question #25705 in Macroeconomics for Nijah
Discuss what type of foreign investments would be best for the economy’s PPF. What are the opportunity costs of these decisions?
If foreign investors start investing in my country, the best way will be portfolio investment, because it allows significant increase in capital resources without the straight foreign control of the production. So, the PPF curve will expand and move to the right due to increase of the total output.
There are several opportunities of investment: to improve the technology, to support production either of more food, or of more clothing.
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