Scenario: Happyland
Happyland, a country of about 48 million people with beautiful beaches, vast natural resources, and a highly skilled labor force, is encouraging foreign direct investment flows. The country has been exporting textiles, computer hardware, and software. The net result of trade is that Happyland exports far more goods and services and receives more income from abroad than it imports and pays abroad.
-Which of the following can Happyland use to encourage foreign direct investment inflows?
A) Tax incentives
B) Low-interest loans
C) Infrastructure improvements
D) All of the above

Question

Quizplus · Accepted Answer

Happyland can use multiple strategies to encourage foreign direct investment including tax incentives to reduce the tax burden on investors, low-interest loans to entice investors to invest in the country's booming market and infrastructure improvements to make it more convenient for investors to do business in Happyland. Therefore, all of the above options are valid choices to encourage foreign direct investment inflows.

Scenario: Happyland Happyland, a Country of About 48 Million People with Beautiful