If a developing country wanted to increase its level of investment, which action would directly lead to this goal?
A) Strengthen and enforce private property laws.
B) Provide a minimum level of food to all people in the country.
C) Increase taxes to prevent corporations from keeping excess profits.
D) Nationalize all foreign manufacturing facilities in the country.

Question

Quizplus · Accepted Answer

Strengthening and enforcing private property laws provides a stable legal framework that encourages foreign investment and entrepreneurship. Investors need assurance that their investment will be protected, including their property rights. This can lead to increased investment and economic growth in the country. Providing a minimum level of food or nationalizing foreign manufacturing facilities may not directly lead to an increase in investment, while increasing taxes can discourage investment by reducing profits.

If a Developing Country Wanted to Increase Its Level of Investment