All of the following contribute to low investment spending in DVCs except
A) low rates of saving.
B) inadequacy of public capital goods (infrastructure).
C) political instability.
D) expensive labor.

Question

Quizplus · Accepted Answer

Expensive labor is not a contributing factor to low investment spending in DVCs. Low rates of saving, inadequacy of public capital goods, and political instability are all factors that can discourage investment in DVCs. However, expensive labor is not typically cited as a reason for low investment spending in these countries. In fact, some DVCs may have relatively low labor costs compared to more developed countries, which can make them more attractive to certain types of investors.

All of the Following Contribute to Low Investment Spending in DVCs