The acquisition of more than 10 percent of the shares of ownership in a company in another nation is called
A) portfolio investment.
B) gross private international investment.
C) foreign direct investment.
D) majority investment.
C
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Which of the following is an example of an economic investment?
A. Purchasing shares of a mutual fund B. Putting money in a bank CD C. Buying a corporate bond or stock D. Building a new bank office
TheWall Street Journalreports that “hard times aid poultry companies as people eat cheaper fowl.” In the language of economists, this means
A. chicken is an inferior good. B. chicken has a negative substitution effect. C. chicken has a positive substitution effect. D. people’s tastes change during recessions. E. chicken has a positive income effect.
Which of the following is an example of a "damaged goods" strategy
a. A supermarket offers free parking space but charges higher for groceries b. A television reseller spends time making sure that the picture quality of the bargain priced sets is fuzzy c. A gift store hikes up the prices on gift wrapping services during its seasonal sale d. All of the above
A patent gives a firm a monopoly in the production of the patented good. While monopoly profits provide an incentive for firms to innovate, the monopoly power imposes a cost on consumers. Why do consumers bear a cost from that monopoly? Is the cost to consumers greater than the profits earned by the monopolist?