The Lack of Capital Formation in Developing Countries Is Due

question 90

Multiple Choice

The lack of capital formation in developing countries is due in part to

• A) excessive foreign aid.
• B) the fact that it is harder to forgo current consumption to be able to save.
• C) high interest rates.
• D) high tax rates on private investment.
• E) government prohibitions on private ownership.

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Definitions:

Enhancing Product

Activities or modifications aimed at improving a product’s appeal, functionality, or market competitiveness.

Form Utility

Form utility refers to the value added to goods through the manufacturing process, transforming raw materials into finished products that are more desirable to consumers.

Appealing To Buyers

Strategies used by companies to attract and persuade potential customers to purchase their products or services.

Direct Channel

A distribution method where a company sells its products or services directly to its customers without the use of intermediaries or third parties.