When a nation's political environment is more favorable, it will:
A) attract more physical investment.
B) encourage individuals to invest more heavily in human capital.
C) encourage the development and efficient use of natural resources.
D) do all of these.

Question

Quizplus · Accepted Answer

A favorable political environment provides stability and security, which attracts physical investment from domestic and foreign investors. It also encourages individuals to invest in their human capital, such as education and training, to improve their skills and productivity. Additionally, a stable political environment facilitates the development and efficient use of natural resources, as investors and businesses can operate without fear of political instability or interference. Therefore, all three choices are correct.

When a Nation's Political Environment Is More Favorable, It Will