Poor countries often have a difficult time attracting foreign direct investment funds because
A) wages are low in poor countries.
B) investment risks are quite low in poor countries so rates of return are low.
C) property rights are not protected so investors fear their property may be confiscated.
D) All of the above are correct.

Question

Quizplus · Accepted Answer

Poor countries often have weak property rights protection which can deter foreign direct investment as investors fear that their investment may be confiscated. While wages may be low in poor countries, it is not necessarily a determining factor in attracting foreign direct investment. Investment risks may also be high in poor countries due to political instability or insufficient infrastructure, leading to lower rates of return.

Poor Countries Often Have a Difficult Time Attracting Foreign Direct