Many governments actively work to:
A. discourage foreign direct investment, in an effort to encourage locals to invest in their own economy.
B. discourage foreign direct investment, in an effort to avoid "crowding out."
C. attract foreign direct investment, hoping it will build up their capital stock when domestic savings aren't sufficient.
D. attract foreign direct investment, so that when foreign companies invest in local firms, they can transfer human capital to local managers.
Answer: C
You might also like to view...
The most extensive indexing in the United States is in
a. interest payments on bonds or savings accounts. b. government transfer payments, including Social Security benefits. c. government contracts for military goods. d. escalator clauses in wage and salary contracts.
A decision to supply labor or not to supply it is also a decision to
A. earn the highest possible wage. B. demand or forgo a certain amount of leisure. C. be as productive as possible. D. join the union.
Considering a put option; if the price of the underlying asset increases:
A. the value of the put option also increases. B. the time value of the option decreases. C. the intrinsic value of the option increases. D. the value of the option decreases.
All the following are assumptions of the classical model EXCEPT
A. wages and prices are flexible. B. buyers and sellers react to nominal money prices rather than to relative prices. C. people are motivated by self-interest. D. pure competition exists.