You are the CEO of a U.S. firm considering building a factory in Chile. If the dollar appreciates relative to the Chilean peso, then other things the same
a. it takes fewer dollars to build the factory. By itself building the factory increases U.S. net capital outflow.
b. it takes fewer dollars to build the factory. By itself building the factory decreases U.S. net capital outflow.
c. it takes more dollars to build the factory. By itself building the factory increases U.S. net capital outflow.
d. it takes more dollars to build the factory. By itself building the factory decreases U.S. net capital outflow.
a
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An example of a monopoly based on control of a key resource is
A) Microsoft's Windows operating system. B) Major League Baseball. C) NASA. D) the U.S. Food and Drug Administration.
A good's Demand Curve is QD = 50 - 2P, and its Supply Curve is QS = 40 + P
a. When P = $10, what is the difference, if any, between QD and QS? b. When P = $2, what is the difference, if any, between QD and QS? c. What are the equilibrium values of P and Q?
If the market price falls from P0 to P1 in the above figure, then
A) a new equilibrium quantity is established. B) there is a shortage equal to the distance EF. C) there will be a further tendency for price to fall. D) there is a surplus of goods on the market equal to the distance Q1, Q2.
How can government policies reduce market failure?
a. Price controls allot resources fairly. d. Business incentives promote efficiency. b. Regulations satisfy special interests. c. Sales taxes distort market price signals.