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. Increase taxes on income from savings. Give families cash payments on the condition that their children show up for school and medical exams. Protect property rights and enforce contracts. Provide tax breaks and patents for firms that pursue research and development in health and sciences. In less developed countries, what does the brain drain refer to? The emigration of highly skilled workers to rich countries Rapid population growth that lowers the stock of capital per worker Lower productivity due to a malnourished workforce Rapid population growth that increases the burden on the educational system

Explanation / Answer

When Yamahonda, a Jaanese-owned motorcycle manufacturer, builds a production plant in Alabama. This is an example of foreign direct investment in the United States.The company tends to set up its production firm at various cities and countries.

The policies are consistent with the goal of increasing productivity in less developed countries is to provide tax breaks and patents for firms that pursue research and development in health and sciences. It will help the citizens to get through proper health facility without any extra expense or tax.

In less developed countries, the brain drain refers to the emigration of highly skilled worker to rich countries. The correct answer is otpion (A). THis shows that when an individual is highly educated then he looks for a relatively high wage which is provided in rich countries. Thereby, a person leaves his own country and shifts to such countries for livelihood.

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