Answer:
The answer is: D) They attract the largest FDI from MNEs. If you consider FDI´s share of the country´s GDP
Explanation:
The countries that are located in the base of the global economic pyramid are all underdeveloped and poor countries, so no North America, Europe, Japan, China, or Australia. If you consider the total nominal amount of Foreign Direct Investment (FDI) by Multinational Enterprises (MNEs) in the world, the countries that receive the most of them usually have large economies or high GDP per capita (only Brazil is an exception) like the US, China, Belgium, Canada, France, Russia, Singapore, etc.
But if you consider FDI as a percentage of a country´s GDP the list of receiving countries varies a lot. The following is the list of the 10 countries with the greatest share of FDI to GDP in 2011 (UN 2011 report)
In this list you can find 6 countries that are extremely poor but very rich in natural resources (in this case minerals). So if consider the relative size of FDI in those economies, then it´s huge. Most FDI done on poor countries is directed to mining or oil corporations.
The economies in the base of the global economic pyramid attract the largest FDI from MNEs.
FDI or Foreign Direct Investment refers to the investment in a company by a company located outside the borders of the country. The international or foreign company controls the domestic company.
The economies in the base of the global economic pyramid are considered as the poorest economies. These economies though are rich in resources.
The multinational enterprises or MNEs are profit oriented and try to invest in the base economies to earn higher profits. Therefore the base economies of the global economic pyramid attract FDI from MNEs.
Learn more about FDI here:
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