Which of the following is true of how human capital affects foreign investment in a country?
A)Countries with low human capital attract foreign facilities looking for high skills and low wages.
B)Countries that have high human capital are likely to attract foreign facilities looking for high turnover.
C)Countries that shift unionized manufacturing jobs to other countries do so for high-skilled workers.
D)Countries that invest in education are likely to attract direct foreign investment.
E)Countries that have low human capital are likely to attract foreign facilities looking for low turnover.

Question

Quizplus · Accepted Answer

Human capital refers to the skills, knowledge, and abilities of a country's workforce. When a country invests in education and improves the skills of its workforce, it becomes an attractive location for foreign investors who want to benefit from a highly skilled labor force. Therefore, countries that invest in education are likely to attract direct foreign investment. Other options are not necessarily true or do not have a clear correlation with human capital and foreign investment.

Which of the Following Is True of How Human Capital