The fifteen-year-old civil war in Shagoca has caused significant setbacks for many foreign investments. The diamond mines in Shagoca are located close to population centers, which would allow for easy transport In certain states in Shagoca, profit from diamond mining is as heavily taxed as it is in the United States Diamond mining in climates closer to the equator, such as that in Shagoca, is much easier than diamond mining in regions where the soil is frozen most of the year
A company that invests the necessary infrastructure in a large untapped diamond mine can reap as much as 700% profit in the first year. Some of the largest untapped diamond mines in the world are in the nation of Shagoca. Ttherefore, the American company that brokers a deal in the capital Conkin that allows it to put the necessary infrastructure in place at those mines stands to reap tremendous profits.
Which of the following, if true, most helps to explain why American companies are not eager to invest in infrastructure necessarily for diamond mining in Shagoca?