By the early 1990s, the radical position toward FDI was in retreat due

QUESTION

By the early 1990s, the radical position toward FDI was in retreat due to the rise of communism in eastern Europe.

Indicate whether the statement is true or false.

ANSWER

FALSE
By the early 1990s, the radical position was in retreat almost everywhere. There seem to be three reasons for this: (1) the collapse of communism in eastern Europe; (2) the generally abysmal economic performance of those countries that embraced the radical position, and a growing belief by many of these countries that FDI can be an important source of technology and jobs and can stimulate economic growth; and (3) the strong economic performance of those developing countries that embraced capitalism rather than radical ideology (e.g., Singapore, Hong Kong, and Taiwan).