The main factors that discourage investment in capital and skills in developing countries are

Question

Quizplus · Accepted Answer

Political instability and insecure property rights are significant deterrents to investment in developing countries. However, misguided economic policies also play a crucial role in discouraging investment. Policies such as high taxation, price controls, and excessive regulation can make it difficult and costly to do business in these countries, leading investors to look elsewhere. Therefore, option B, which includes all three factors, is the best answer.

The Main Factors That Discourage Investment in Capital and Skills