Which of the following best explains why more foreign inv...
Which of the following best explains why more foreign investments are not attracted to West Africa?
Small population size
Small sizes of market places
Instability in political and industrial policies
Lack of manpower needed to work in industries
Correct answer is C
Instability in political and industrial policies is a major problem of growth and development in west Africa. An industrial policy, that led to lower growth and more inequality and instability will discourage foreign investment. A traditional criticism of industrial policies is related to 'political economy', that such policies are likely to be captured by special interests to advance themselves.
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