Why are international investors who have invested in developing nations favoring foreign direct investment and portfolio investment over loans?
A) The process of making loans is usually more difficult for investors to do than foreign direct and portfolio investment.
B) The interest rate charged on the loans is usually lower than what can be earned in the U.S.
C) It is illegal for banks to make loans to foreign firms.
D) Investors have an aversion to owning dead capital and want to make sure that the resources they own do not become dead capital.
D
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Assuming that the central bank is following a money stock targeted, an exogenous rise in investment demand
a. causes income to rise but the money stock has to be increased to accommodate the expansion. b. has to be accommodated with open market purchases to expand the money stock. c. increases income, money demand, and lowers the interest rate. d. increases income and money demand and lowers the interest rate. e. none of the above.
New Keynesian explanations for sticky prices and wages include
a. menu costs. b. efficiency wages. c. insider-outsider distinctions. d. productivity shocks. e. all but d.
A payment for the use of any resource over and above its opportunity cost is called
A. accounting profit. B. normal cost. C. economic profit. D. economic rent.
Among the simplest costs of crime to evaluate are typically the
A. wages lost due to missed work days following an assault. B. deterioration in quality of life due to physical injury. C. psychological trauma suffered by victims of sexual assault. D. risk that future productivity at work might be compromised by an injury.