Economic factors based on whether they encourage investment and economic growth in a country include:
Encourage economic growth:
- Property rights
- Competitive markets
- Dependable legal system
Discourage economic growth:
- Corrupt government
- Political instability
- Trade restrictions
What leads to economic growth?
When there are property rights in an economy, people are more likely to invest in the economy because they can own things that will bring profit. Competitive markets ensure that efficiency is the order of the day which leads to more growth and a dependable legal system gives investors confidence.
Corrupt governments on the other hand will not inspire confidence in investors because such nations are risky. Especially the nations that have political instability. Trade restrictions also discourage economic growth as they make it difficult to trade and get better goods.
Find out more on the effects of trade restrictions at https://brainly.com/question/26330280
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