Which of the Following Factors Would Be Most Likely to Encourage

question 56

Multiple Choice

Which of the following factors would be most likely to encourage capital formation in a less-developed nation?

• A) High and variable rates of inflation.
• B) Tariffs and quotas that restrict international trade.
• C) A legal system that provides for secure property rights and even-handed enforcement of contracts.
• D) High marginal tax rates.

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Definitions:

Insource

refers to shifting jobs or tasks that were previously outsourced back within the organization, often to maintain control or reduce costs.

Outsource

The practice of hiring third-party service providers to perform tasks, handle operations, or provide services that are either difficult to manage or are outside the company's expertise.

Customized Items

Products or services tailored to meet the specific needs or preferences of an individual customer or market segment.

Mitigate Risks

The process of taking action to minimize the likelihood and impact of undesired events or risks.