How will the right answer fit in terms of support and conclusion?

Only the right answer will add support for disagreeing with the conclusion.

Highlight the main conclusion in the passage, if there is one:

we should pass laws making it much more difficult for overseas investors to remove their capital.

Economist: [SUPPORT]. Hence, [INTERMEDIATE CONCLUSION]. Therefore, [MAIN CONCLUSION].

Map the wording of the answers to the wording of the passage:

(A) …the country needs to diversify its investments…

This doesn’t directly relate to the laws the author recommends passing in the conclusion, so it’s really not relevant.

(B) …would strongly discourage them from investing any additional capital.

Here’s a clear downside to the author’s conclusion. If they don’t invest “additional capital”, the country might not have “as much capital as possible”.

(C) The historical periods during which…

This feels like it’s getting off the subject. But if you did read it all the way through, this info would actually only help the author’s argument.

(D) …have not entirely prevented the removal…

Okay, so you’re saying the laws did exactly what they were supposed to? Cool. The passage only says “making it much more difficult”, it doesn’t say make it impossible. So it wouldn’t hurt the conclusion if similar laws haven’t “entirely prevented” investors from pulling out.

(E) …laws that place some restrictions…

Yah, how many? How strong were those restrictions? We have no info on any of that. So we don’t know exactly how this relates the conclusion about “making it much more difficult”. And we are not allowed to add in our own reasoning.

(B) is the correct answer.