Suppose Yamahonda, a Japanese-owned motorcycle manufacturer, builds a production plant in Alabama. This is an example of foreign investment in the United States. Which of the following policies are consistent with the goal of increasing productivity and growth in developing countries? Check all that apply.

(A) Increasing taxes on income from savings
(B) Providing tax breaks and patents for firms that pursue research and development in health and sciences
(C) Pursuing inward-oriented policies
(D) Imposing restrictions on foreign ownership of domestic capital

(B) Providing tax breaks and patents for firms that pursue research and development in health and sciences

Explanation:

By providing tax breaks for firms serves as an enabling environment for firms to succeed, as money that otherwise would have been spent in taxes, is re-invested into the firm, hence the goal of increasing productivity and growth is easily achieved.

answer decisions made by individual households and firms;

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