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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 Increasing taxes on income from savings Providing tax breaks and patents for firms that pursue research and development in health and sciences Pursuing inward-oriented policies What is a significant factor in long-run economic growth that Robert Fogel, an economic historian, is best known for suggesting? Improvements in the protection of property and enforcement of contracts through the maturation of the civil and criminal justice systems Improvements in technology from the incentives created by a better patent system Inward-oriented policies that protect domestic firms from foreign competition Improvements in worker health from better nutrition

Sagot :

Lanuel

Answer:

I. Protecting property rights and enforcing contracts.

II. Providing tax breaks and patents for firms that pursue research and development in health and sciences.

2. Improvements in worker health from better nutrition.

Explanation:

A foreign direct investment (FDI) can be defined as an investment made by an individual or business entity (investor) into an investment market (industry) located in another country. The investor here, shares a different country of origin from the country where his investment is located.

In a foreign direct investment (FDI), an investor must establish his business, factory and operations in a foreign country or acquire assets in a business that is being operated in a foreign country.

Additionally, foreign direct investment (FDI) are categorized into three (3) main types and these are;

1. Vertical FDI: it involves establishing a different business that is however similar to the main business owned by the investor.

2. Horizontal FDI: it involves establishing the same type of business in a foreign country as owned in the investor's country.

3. Conglomerate FDI: it involves establishing a business that is completely different in another (foreign) country.

In this scenario, Yamahonda, a Japanese-owned motorcycle manufacturer, builds a production plant in Alabama.

The policies which are consistent with the goal of increasing productivity and growth in developing countries includes;

I. Protecting property rights and enforcing contracts.

II. Providing tax breaks and patents for firms that pursue research and development in health and sciences.

A significant factor in long-run economic growth that Robert Fogel, an economic historian, is best known for suggesting improvements in worker health from better nutrition i.e the quality of food that is given to the employees by the employers would go a long way to improve their level of production.

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