A recent survey (by Bloomberg) shows that the USA has fallen behind emerging markets in Brazil, China and India as the preferred place to invest. Why is-it so ? 1. Unstable economic situation of the USA which the global investors feel not likely to improv

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Submitted by examrobotsa on

Q: 84 (CDS-II/2011)
A recent survey (by Bloomberg) shows that the USA has fallen behind emerging markets in Brazil, China and India as the preferred place to invest. Why is-it so ?
1. Unstable economic situation of the USA which the global investors feel not likely to improve in the near future.
2. Global investors are finding Brazil, China and India to be actually more amenable to foreign investment.

Select the correct answer using the code given below :

question_subject: 

Current Affairs

question_exam: 

CDS-II

stats: 

0,6,106,6,50,54,2

keywords: 

{'foreign investment': [0, 0, 0, 1], 'global investors': [0, 0, 0, 1], 'china': [1, 0, 1, 2], 'markets': [1, 0, 0, 5], 'unstable economic situation': [0, 0, 0, 1], 'india': [8, 1, 7, 13], 'brazil': [0, 0, 1, 0], 'usa': [12, 5, 29, 27]}

The correct answer is option 1: 1 only.

According to the given information, a survey conducted by Bloomberg revealed that the USA has fallen behind emerging markets in Brazil, China, and India as the preferred place to invest. The main reason behind this shift in preference can be attributed to the unstable economic situation of the USA, which global investors do not see improving in the near future.

Option 1 states that the unstable economic situation of the USA is the reason why global investors do not consider it as a preferred place to invest. This aligns with the information provided in the question, making it the correct answer.

Option 2 suggests that global investors are finding Brazil, China, and India more amenable to foreign investment. Although this may be true, it is not the primary reason stated in the question for the USA falling behind in investment preference. Therefore, option 2 is not the correct answer.

In conclusion, the correct answer is option 1 as it accurately explains the reasons why the USA has fallen behind emerging markets in Brazil, China, and India as the preferred place to invest.