2006-11-28 03:58:33 · 3 answers · asked by chemicaldefence 1 in Social Science ➔ Economics
You need to recall that investment = savings - hoarding + net capital inflow. Usually, the most important determinant of domestic investment is savings. As to foreign direct investment, it's determined by a great variety of factors, from the size of domestic market to the perceived degree of property rights protection...
2006-11-28 04:23:55 · answer #1 · answered by NC 7 · 0⤊ 0⤋
Number one would be protection of private property. I'm not going to risk investment in a country, where the government can and might seize my property leaving me with nothing.
2nd would be rate of return, which would include how much the government was going to take in taxes.
2006-11-28 05:59:51 · answer #2 · answered by Roadkill 6 · 0⤊ 0⤋
investors are attracted by rates of return.
2006-11-28 04:42:36 · answer #3 · answered by Dirk N 3 · 0⤊ 0⤋