Which of the Following Would Decrease the Likelihood That Foreign

question 37

Multiple Choice

Which of the following would decrease the likelihood that foreign business firms will invest in a country?

• A) A low corporate profit tax rate
• B) Political stability
• C) A well-established legal system
• D) Good law enforcement
• E) Political corruption

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Definitions:

Lower Cost

A situation or strategy in which the production or offering of goods and services is achieved with minimal expense.

Sunk Costs

Costs that have already been incurred and cannot be recovered, which should not influence future business decisions.

Economic Decisions

Choices made by individuals, firms, or governments regarding the allocation of resources to satisfy needs and wants.

Marginal Decision Maker

is an individual or entity that makes choices based on the additional cost or benefit of the next unit of consumption or production.