Suppose Hondamaha, a motorcycle manufacturing firm headquartered in Japan, builds a production plant in Arizona. 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. Increasing taxes on income from savings Imposing restrictions on foreign ownership of domestic capital O Providing tax breaks and patents for firms that pursue research and development in health and sciences O Protecting property rights and enforcing contracts In less developed countries, what does the term brain drain refer to?

Exploring Economics
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ISBN:9781544336329
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Chapter20: Economic Growth In The Global Economy
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Suppose Hondamaha, a motorcycle manufacturing firm headquartered in Japan, builds a production plant in Arizona.
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.
O Increasing taxes on income from savings
Imposing restrictions on foreign ownership of domestic capital
O Providing tax breaks and patents for firms that pursue research and development in health and sciences
O Protecting property rights and enforcing contracts
In less developed countries, what does the term brain drain refer to?
O Rapid population growth that lowers the stock of capital per worker
The emigration of highly skilled workers to rich countries
Lower productivity due to a malnourished workforce
O Rapid population growth that increases the burden on the educational system
Transcribed Image Text:Suppose Hondamaha, a motorcycle manufacturing firm headquartered in Japan, builds a production plant in Arizona. 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. O Increasing taxes on income from savings Imposing restrictions on foreign ownership of domestic capital O Providing tax breaks and patents for firms that pursue research and development in health and sciences O Protecting property rights and enforcing contracts In less developed countries, what does the term brain drain refer to? O Rapid population growth that lowers the stock of capital per worker The emigration of highly skilled workers to rich countries Lower productivity due to a malnourished workforce O Rapid population growth that increases the burden on the educational system
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In economics, an investment refers to the purchase of goods that are not consumed today but are used in the future to create wealth or generate income.

Investment is crucial for economic growth, as it increases capital formation, encourages innovation and productivity, and creates employment opportunities.

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