Economics Command Economy Questions
In a command economy, the government has control over all economic activities, including foreign investment. The government typically decides whether to allow or restrict foreign investment based on its economic and political objectives. It can set regulations, restrictions, and guidelines for foreign investors, determining the sectors in which they can invest, the amount of investment allowed, and the terms and conditions for investment. The government may also prioritize domestic industries and limit foreign ownership or control. Overall, the command economy handles foreign investment through centralized decision-making and government control.