Asked by Bethany Hinkle on Jul 24, 2024

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In recent years, many DVCs have come to realize that

A) expanded international trade is harmful to DVCs.
B) private capital investment is essential for economic growth in DVCs.
C) the International Monetary Fund is the major institutional barrier to economic growth.
D) government involvement in economic development is the only avenue for economic growth.

Private Capital Investment

The spending of resources by private individuals or enterprises on assets expected to yield returns over time, such as shares, real estate, or machinery.

Economic Growth

An increase in the output of goods and services in an economy over a period, usually measured by the rise in real GDP, indicating the economy's overall health and prosperity.

DVCs

Depending on context, can refer to Digital Video Cameras or other abbreviations; without a specific context, it's difficult to provide an accurate definition.

  • Describe the contribution of governmental initiatives towards economic growth and the impact of private endeavors in advancing developing nations.
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Verified Answer

AS
Arjun SubramanyamJul 25, 2024
Final Answer :
B
Explanation :
Many DVCs have recognized that private capital investment, whether it be through foreign direct investment or domestic entrepreneurship, is crucial for long-term economic growth. These investments can bring in new technologies, create jobs, and drive economic expansion. Without it, DVCs are left struggling to develop economically without adequate resources.