A major factor affecting investment opportunities in rich versus poor nations, aside from the productivity of capital is:
A) population growth.
B) risk factors that threaten investment.
C) government meddling in the affairs of business.
D) tax burdens on wealthy individuals.

Question

Quizplus · Accepted Answer

Risk factors such as political instability, corruption, natural disasters, and security threats can greatly affect investments in both rich and poor nations. Investors are willing to take on higher risks for potentially higher returns, but the risks must be manageable and not outweigh the potential gains. In poor nations, these risk factors are often magnified, making it less attractive for investors to put their money into those economies.

A Major Factor Affecting Investment Opportunities in Rich Versus Poor