Reference no: EM132828947

Choose one correct option:

You are the Prime Minister of a developing country, which recently got independent and has undergone its first democratic elections. The government is struggling to gain its strengths and to use the opportunities found in its new independence. The government is considering various economic and strategic actions and is drawing on the experience of many previously independent democracies. The government is considering to change its FDI (Foreign Direct Investment) regulations and open up for foreign companies to enter the country. It is also seeking assistance from the WTO (World Trade Organization) and the IMF (International Monetary Fund). The request to the IMF is to provide loans to the country at favorable terms. The IMF is positive, but sets some conditions for the loan. The IMF is focusing strongly on securing investments and FDI into the country by companies focusing on research and development and entrepreneurship. The IMF board of directors considers this to be the biggest opportunity facing the country at the moment. In addition, the IMF puts forward some well known requirements and conditions.

If the government is to follow the IMF conditions, which of the following actions should be in focus?

a) Reforms and improvements

b) Improved infrastructure, especially road construction

c) Clear legal structure concerning intellectual property rights

d) Clear legal structure concerning FDI