Why doesn't capital flow from rich countries to poor countries?
A) Technology is not as well disseminated and developed in low income economies.
B) People have more human capital in poor countries.
C) Intertemporal transactions between countries are not as difficult to carry out between countries as they are between individuals within a country.
D) Government restrictions on international investment have been eliminated.
Correct Answer:
Verified
Q26: Diversification:
A) permits asset holders to reduce the
Q27: The motive for international investment referred to
Q28: The gross domestic product (GDP) of a
Q29: Since we are ultimately interested in the
Q30: Suppose that the return to investment is
Q32: The statistical evidence on the growth effects
Q33: Martin Feldstein and Charles Horioka found that
Q34: Among the reasons presented as to why
Q35: The risk of default can be reduced
Q36: The risk of default can be reduced
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