Why does the money that is invested in many less developed countries have to come from outside the country?

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1045027

2026-08-09 08:50

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Money invested in less developed countries often comes from outside due to limited domestic capital resources, insufficient savings, and underdeveloped financial markets. These countries may lack the necessary infrastructure, technology, and expertise to attract local investment. Additionally, external investors provide the foreign direct investment needed to spur economic growth, create jobs, and enhance productivity that local investors may not be able to achieve on their own. As a result, foreign investment becomes crucial for development and progress in these nations.

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