If a country wants to improve its attractiveness as a place for doing

QUESTION

If a country wants to improve its attractiveness as a place for doing business and as an investment site, it should:

A. oppose the rule of law.

B. ensure that the economic activity is heavily regulated by the state.

C. move toward a market-based system.

D. extensively restrict property rights.

E. avoid enforcing intellectual property laws.

ANSWER

C
A nation with democratic political institutions, a market-based economic system, and strong legal system that protects property rights and limits corruption is clearly more attractive as a place in which to do business than a nation that lack democratic institutions, where economic activity is heavily regulated by the state, and where corruption is rampant and the rule of law is not respected.