Scenario: Happyland
Happyland is a country characterized by beautiful beaches, vast natural resources, and a highly skilled labor force. Happyland is now encouraging foreign direct investment flows. The country has been exporting textiles, computer hardware, and software programs. The net result of the 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 methods will Happyland use to discourage foreign direct investment inflows?
A) tax incentives
B) low-interest loans
C) performance demands
D) tax breaks

Question

Quizplus · Accepted Answer

Happyland wants to discourage foreign direct investment inflows, so tax incentives and tax breaks (choices A and D) would not be effective as they would encourage investment. Low-interest loans (choice B) could also encourage investment. Performance demands (choice C) would require foreign investors to meet certain standards or goals, which could make investing in Happyland less appealing and discourage investment.

Scenario: Happyland Happyland Is a Country Characterized by Beautiful Beaches, Vast Natural