Governments in developing countries can promote economic growth by:

Question

Quizplus · Accepted Answer

Creating the proper legal and economic environment is the best choice as it can help attract domestic and foreign investment, encourage entrepreneurship, and provide incentives for businesses to grow and expand, which in turn promotes economic growth. Slowing down the growth of the financial sector and reducing the presence of foreign direct investment can limit access to capital and hinder economic growth. Taxing imports of foreign goods may protect domestic industries but may also lead to higher prices for consumers and limit competition, which can prevent innovation and growth.

Governments in Developing Countries Can Promote Economic Growth By