In some developing countries, people prefer to invest their money in businesses outside their own country. What are the reasons for this? What can governments do to change this trend? Give reasons for your answer and include any relevant examples from your own knowledge or experience. Write at least 250 words

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Individuals would invest their capital in a foreign business
instead
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of investing their
money
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in a foreign business than in their own homey. There are some causes concerning
this
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and the government’s role to alternate
this
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trend.
This
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essay will discuss both reasons and solutions to
this
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matter. There are several reasons why people invest their wages in
businesses
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outside their
country
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. It can
First
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be said that in developing countries, the business risk is too high because of inflation. In
this
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circumstance, individuals prefer to invest their
money
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in a developed
country
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’s company with a lower inflation
rate
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. In Iran,
for example
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, people generally put their
money
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in digital currency markets, including Bitcoin and Tether, which may be more profitable due to their being more worldwide. Another reason for
this
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issue is the high amount of
taxes
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that governments get from
investors
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.
This
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leads to people being encouraged to invest their funds in a
country
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with lower
taxes
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. An example of
this
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could be Monaco, whose
investors
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are mostly foreigners owing to the low
rate
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of
taxes
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. The most obvious way to approach
this
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issue could be to encourage
investors
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to obtain some benefits,
such
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as reducing the
rate
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of
taxes
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and considering some loans. The owners of
businesses
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prefer to invest their
money
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in their
country
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if they ensure that government aids them in difficult situations.
For instance
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, governments can consider some loans with lower repayment for those wanting to expand their
businesses
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. In conclusion,
although
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investors
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prefer to fund
businesses
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abroad rather than inside their own
country
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because of the high-risk
rate
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, there is a solution to solve
this
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problem,
such
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as providing some profits like loans.
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Include an introduction and conclusion

A conclusion is essential for IELTS writing task 2. It is more important than most people realise. You will be penalised for missing a conclusion in your IELTS essay.

The easiest paragraph to write in an essay is the conclusion paragraph. This is because the paragraph mostly contains information that has already been presented in the essay – it is just the repetition of some information written in the introduction paragraph and supporting paragraphs.

The conclusion paragraph only has 3 sentences:

  • Summary
  • Restatement of thesis
  • Prediction or recommendation

Example:

To summarize, a robotic teacher does not have the necessary disciple to properly give instructions to students and actually works to retard the ability of a student to comprehend new lessons. Therefore, it is clear that the idea of running a classroom completely by a machine cannot be supported. After thorough analysis on this subject, it is predicted that the adverse effects of the debate over technology-driven teaching will always be greater than the positive effects, and because of this, classroom teachers will never be substituted for technology.

Start your conclusion with a linking phrase. Here are some examples:

  • In conclusion
  • To conclude
  • To summarize
  • Finally
  • In a nutshell
  • In general

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Topic Vocabulary:
  • perception of stability
  • diversify portfolios
  • political instability
  • transparency
  • currency appreciation
  • economic growth
  • investor confidence
  • business-friendly environment
  • legal framework
  • tax breaks
  • grants
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