Most foreign investment is today is directed towards high-income countries because
A) there are tax breaks and subsidies available.
B) markets are larger, so transportation costs are minimized by producing near the market.
C) high-income countries are politically stable.
D) there are no economies of scale in low-income countries.
B
You might also like to view...
In case of a decrease in product prices:
A) the quantity effect always dominates the price effect. B) the price effect always dominates the quantity effect. C) when the price effect dominates the quantity effect, total revenue increases. D) when the quantity effect dominates the price effect, total revenue increases.
Refer to Figure 4-10. What area represents the deadweight loss after the imposition of the ceiling?
A) J + H B) C + E C) C + E + J + H D) G + H
When the Federal Reserve buys Treasury bonds, it is called
A) a swap. B) an open market operation. C) a bond roll-over. D) bonding.
A federal budget deficit places a genuine burden on future generations when the
A. crowding-out effect is stronger than the crowding-in effect. B. crowding-in effect is stronger than the crowding-out effect. C. crowding-out and crowding-in effects work in opposite directions. D. crowding-out and crowding-in effects operate in the same direction.