Which of the following is an example of U.S. foreign direct investment and by itself increases U.S. net capital outflow?
a. A Swedish bank buys a bond issued by the U.S. government.
b. A German company builds a car factory in the U.S.
c. A U.S. mutual fund purchases stock issued by a corporation in Bolivia.
d. A U.S. grocery chain builds and operates a new warehouse in Honduras.
d
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If the price of chicken rises from $1.25 per pound to $1.75 per pound, and the quantity demanded goes from 250 pounds per day to 175 pounds per day, this illustrates
A. the law of diminishing returns. B. the law of supply. C. the law of demand. D. the law of supply and demand.
Which of the following is NOT a necessary precondition for economic growth?
A) economic freedom B) democracy C) property rights D) free markets E) ALL of the above are necessary preconditions.
A franchise is
A) a firm that buys and operates a brand name business in a new market. B) a branch of a national company. C) a firm with the legal right to sell a good or service in a particular area. D) a firm with no competitors.
Hyperinflation typically ________
A) describes periods of extreme price increases of over 50% per month or 1,000% per year B) is a result of extreme periods of money growth that tend to come from large fiscal imbalances C) affects both poor and developed economies D) all of the above E) none of the above