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Business, 04.03.2020 06:04 yazzyv05

According to our discussion in class, two reasons why capital may not flow to poor countries are that the poorer countries may:.a. have economies unlike those described by a Cobb–Douglas production function and not be subject to diminishing returns to capital. b. have already accumulated high levels of capital relative to labor and may already have access to advanced technologies. c. legally prevent the inflow of foreign capital and provide strong legal protection of private property. d. have inferior production capabilities (such as a low value of A in the production function) and not enforce property rights (so that investments in the poor countries might be expropriated by the governments there).

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