Some poor countries appear to be falling behind rather than catching up with rich countries.Which of the following could explain the failure of a poor country to catch up?
A)The poor country has outward-oriented trade policies.
B)The poor country allows foreign direct investment.
C)The poor country has poorly developed property rights.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Poorly developed property rights can deter domestic and foreign investment, which can hinder a country's development and prevent it from catching up with richer countries. Outward-oriented trade policies and foreign direct investment can actually promote growth and development, but they may not be enough if property rights are poorly enforced or nonexistent.

Some Poor Countries Appear to Be Falling Behind Rather Than