Question

What is the solution and how do you analyze the data below to solve?

Use the following data to answer the next question (all data UNCTAD, 2013; all in US$ Millions):
Outward FDI Stock 2013: Central African Republic: 43.2; Chad: 70.3; Mozambique: 24.3; Namibia: 31.8; Niger: 14; Rwanda: 12.9; Swaziland: 76.2
Inward FDI Stock 2013: Central African Republic: 619.5; Chad: 4757.7; Mozambique: 20966.9; Namibia: 4277.3; Niger: 4939.7; Rwanda: 853.9; Swaziland: 838.1
FDI 2013 Inflow: Central African Republic: 0.8; Chad: 538.4; Mozambique: 5935.1; Namibia: 699.1; Niger: 631.4; Rwanda: 110.8; Swaziland: 67
FDI 2013 Outflow: Central African Republic: 0; Chad: 0; Mozambique: -0.3; Namibia: -8.2; Niger: -6.7; Rwanda: 13.5; Swaziland: 0.6

Among the African countries listed, some have more capital investments abroad from its multinationals than others.
According to the data provided, and assuming the listed variables is all the information you have, companies from _____ have, overall and over time, invested abroad more than companies from ______:

A. Chad; Niger

B. Niger; Central African Republic

C. Mozambique; Swaziland

D. Mozambique; Chad

Answer 1

The outward FDI stock indicates the investment made by the domestic companies abroad.

If we analyze the given data pertaining to African countries then we can see that Swaziland has the highest outward FDI stock in 2013 while Rwanda has the lowest outward FDI stock in 2013.

The given data also shows that outward FDI stock in 2013 in Chad is greater than the outward FDI stock in 2013 in Niger.

So,

According to the data provided, and assuming the listed variables is all the information you have, companies from Chad have, overall and over time, invested abroad more than companies from Niger.

Hence, the correct answer is the option (A).