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A survey conducted recently in China showed that in the last two years, investments in businesses increased by almost 75%. The same survey also concluded that people became wealthy by investing in businesses, and this motivated other people to invest more in their respective businesses. What most likely triggered this increase in investment?

Respuesta :

Chinese people have always had a mindset of establishing businesses to make money and save well. This mindset resulted in big economic growth in the past couple of years. However, there are different possible factors that can trigger an increase in investment.

1. Capital availability - in the past years China overtook US as world's largest recipient of Foreign Capital. It means more investments from foreign country are coming in and more work and opportunities are becoming available.

2. Competitiveness - As what was mentioned, people have been receiving a good outcome in the past investments that they have made earlier thus, triggering others to follow. China's market is also very competitive when it comes to business because of the low investment required as compared to other countries around it.

3. Local market and business climate - this is where the size of China's population come in to play. Since they have the biggest population, business stability and continuous economic growth is expected. Local market has a wide range of opportunities and any type of product and services would definitely have consumers. 

All of these factors along with some other more are the reason why mainly there is an increase in investment in China. It is what we call a "success domino effect".

Answer:

The answer you're looking for is Incentives.

Explanation:

This is 100% the right answer because I got this question on a test and this was correct.

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