Final answer:
When a nation's financial reporting is transparent and effective, businesses tend to have better access to investor capital.
Step-by-step explanation:
When a nation's standards of financial reporting are transparent and effective, businesses tend to have better access to investor capital. This means that when a country's financial reporting is clear and reliable, businesses are more likely to attract investment from individuals and institutions. Investor confidence is higher when there is transparency in financial reporting, which can lead to more funding opportunities for businesses.