Suppose Yamahonda, a Japanese-owned motorcycle manufacturer, builds a production

Question

Suppose Yamahonda, a Japanese-owned motorcycle manufacturer, builds a production plant in Alabama. This is an example of foreign investment in the United States. Which of the following policies are consistent with the goal of increasing productivity and growth in developing countries? Check all that apply Protecting property rights and enforcing contracts O Providing tax breaks and patents for firms that pursue research and development in health and sciences Imposing restrictions on foreign ownership of domestic capital O Pursuing inward-oriented policies In less developed countries, what does the term brain drain refer to? O Rapid population growth that increases the burden on the educational system O The emigration of highly skilled workers to rich countries Lower productivity due to a malnourished workforce O Rapid population growth that lowers the stock of capital per worker

Explanation / Answer

A. This is an example of foreign direct investment in US.

B. Apply all the options

First, for market functioning, property rights and enforcing contracts should be clear which leads to increasing productivity in countries without any deteredete. It applies

Second, more spending on research and development increase the productivity and increase the innovation in the market. It applies

Third, it weakens the investment in the country. For growing developing countries needs more investment. It doesn't apply

Fourth, developing countries require innovation , investment,etc which would get through international market not by inward orientation. It doesn't apply

Hence option A and B is right

C. Option B is correct

Brain drain means emigration of highly skilled workers to the rich countries.

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.