If all other factors,including human capital,were the same,then compared with Europe,the rate of return on investment in emerging market economies should be

Question

Quizplus · Accepted Answer

Emerging market economies have the potential for higher returns on investment due to higher growth rates, increasing demand, and low competition in their markets. This signals a greater need for new plants and equipment, which further propels economic growth, leading to higher returns. In contrast, Europe has already reached a higher level of development and faces stiff competition from established firms, leading to lower rates of return on investment.

If All Other Factors,including Human Capital,were the Same,then Compared with Europe,the