The channel that is least likely to help India overcome its challenge of lacking significant natural resources
Question:
The channel that is least likely to help India overcome its challenge of lacking significant natural resources is:
A. Channel 1.
B. Channel 2.
C. Channel 3.
Transcribed Image Text:
At a recent international finance and economics conference in Bamako, Mali, Jose Amaral of Brazil and Lucinda Mantri of India are discussing how to spur their countries' economic growth. Amaral believes that growth can be bolstered by removing institutional impediments, and suggests several possibilities for Brazil: launching a rural literacy program, clarifying property rights laws, and implementing a new dividend tax on foreign investors. Mantri responds that, for India, capital deepening will be more effective, and has proposed the following ideas: building a group of auto and textile factories in the southern states, developing a north-south and east-west highway network, and sponsoring a patent initiative. In response, Amaral says to Mantri: "Based on endogenous growth theory, one of those proposals is more likely to raise total factor productivity than result in pure capital deepening." While Mantri recognizes that India lacks the significant natural resources of Brazil, she states that India can overcome this challenge by bolstering long-term growth through three channels: Channel 1: Deepening the capital base. Channel 2: Making investments in technology. Channel 3: Maintaining a low rupee exchange rate. Each country's basic economic statistics were presented at the conference. Selected data for Brazil and India are shown in Exhibit D. Adama Kant, a fund manager based in Mali, is planning to increase the fund's allocation to international equities, and, after some preliminary analysis, has determined that the new allocation will be to Brazilian or Indian equities. After reviewing the data in Exhibit D, Kant decides that the allocation will be to Indian equities. EXHIBIT D Economic Statistics, Brazil and India Economic Statistic GDP per capita, 2010 GDP per capita growth, 1990-2010 GDP growth, 2005-2008 Growth due to labor productivity component Growth due to capital deepening component Brazil India $9,589 $3,575 1.62% 4.84% 4.9% 8.2% 2.9% 6.0% 3.4% 3.6% Kant is concerned about the low standard of living in Mali. To improve per capita GDP, Kant is considering five specific strategies: Strategy 1: Lower the country's tax rate. Strategy 2: Introduce policies that encourage the return of highly educated Malian emigrants. Strategy 3: Build day care centers to permit greater participation of women in the workforce. Strategy 4: Impose high tariffs on imports to protect the country's nascent industries. Strategy 5: Use economic development bank loans to improve the country's transport and manufacturing infrastructure.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (QA)
Answered By
Albert Kinara
i am an expert research writer having worked with various online platform for a long time. i also work as a lecturer in business in several universities and college part time and assure you well researched and articulate papers. i have written excellent academic papers for over 5 year and have an almost similar experience experting many clients in different units. bachelor of commerce (finance)
masters in strategic management
phd finance
4.60+
26+ Reviews
48+ Question Solved
Related Book For
Economics For Investment Decision Makers
ISBN: 9781118111963
1st Edition
Authors: Sandeep Singh, Christopher D Piros, Jerald E Pinto
Question Posted:
Students also viewed these Business questions
-
Determine if the given expression approaches a limit as b , and find that number when it does. 1 b 3
-
In Problem find the transpose of each matrix. 1 2 -1 2 -7 8 1 4 -1 3
-
Why do you think so many politicians in the U.S. government continue to fight against access to free or low-cost birth control for women? Do you believe if there were more women in our government,...
-
Corning-Howell reported taxable income in 2013 of $120 million. At December 31, 2013, the reported amount of some assets and liabilities in the financial statements differed from their tax bases as...
-
A spaceship in distress sends out two escape pods in opposite directions. One travels at a speed v1 = +0.7c in one direction, and the other travels at a speed v2 = - 0.80c in the other direction, as...
-
The statement of profit and loss for JT Andrews for the financial year ended 30 June 2019 reports that the business had increased its gross profit from $123 000 in 2018 to $147 000 in 2019. Its net...
-
Several professionals are listed as being part of compliance efforts with regard to participation in the examination of potential compliance violations. Identify at least three other categories of...
-
Creative Productions manufactured and sold 800 products at $10,000 each during the past year. At the beginning of the year, production had been set at 1,000 products, and direct materials standards...
-
A string has a mass of 6.80 g, is 84.0 cm long, and has a tension of 46.0 N. If you wish to generate a wave of frequency 440.0 Hz and amplitude 0.550 mm, how much power must you supply to the string?...
-
Based on Exhibit D, which Indian economic statistic is least likely to support Kants international equity allocation preference? A. GDP per capita B. Growth due to labor productivity C. Growth due to...
-
Which proposal for India is Amaral most likely referring to in his response to Mantri? A. Patent initiative B. Highway network C. Auto and textile factories At a recent international finance and...
-
It is found that sunlight is focused to a spot 29.6 cm from the back face of a thick lens, which has its principal points H 1 at +2.0 cm and H 2 at -4.0 cm. Determine the location of the image of a...
-
As we discuss ethics this week, we will consider one area of being ethical is fulfilling an important role in a group assignment so that each member of the group can count on the others to do their...
-
HBR Working Capital Simulation: Step 2 (Analyze Reports) and Step 3 (Enter Decisions) In these steps of the simulation, you will act as the CEO of Sunflower Nutraceuticals and decide whether to...
-
Please review the Little Pear Company Processing Payroll Policy and Procedure and respond to the following query: Tracey is a new employee of Little Pear company and will be assisting you (the...
-
Fred Anderton purchased lamps on a 30-day account, to sell from his furniture business. Which entry should he make? Debit Inventory; Credit Accounts Payable Credit Inventory; Debit Cash Credit...
-
Pat Efferton wrote a check for paper to be used in a presentation she was making that week. Which entry should she make? Debit Paper In Office; Credit Accounts Payable Debit Office Supplies...
-
For the given loading, determine the zero-force members in the truss shown. Do Bo C
-
What kind of financial pressures can an LBO cause?
-
Suppose that purely competitive firms producing cashews discover that P exceeds MC. Will their combined output of cashews be too little, too much, or just right to achieve allocative efficiency? In...
-
No firm is completely sheltered from rivals; all firms compete for consumer dollars. If that is so, then pure monopoly does not exist. Do you agree? Explain. How might you use Chapter concept of...
-
Discuss the major barriers to entry into an industry. Explain how each barrier can foster either monopoly or oligopoly. Which barriers, if any, do you feel give rise to monopoly that is socially...
-
A lease agreement that qualifies as a finance lease calls for annual lease payments of $60,000 over a eight-year lease term (also the asset's useful life), with the first payment on January 1, the...
-
Luka bought a villa in an exclusive neighborhood at the southern part of the country. He agreed to pay 400.000 php every 3 months at 11% compounded quarterly for 5 years, and the Irst payment was due...
-
When is the filing deadline for an individual taxpayer who has self - employed or sole proprietor or farming or fishing business income to report in 2 0 2 3 ?
Study smarter with the SolutionInn App