Factories owned by U.S. firms on the Mexican side of the U.S.-Mexico border are:
A. harmful to Mexico's efforts to increase their economic growth.
B. troubling for the Mexican government.
C. not an example of foreign direct investment in Mexico.
D. an important source of foreign direct investment in Mexico.
Answer: D
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What is meant by the "law of one price"?
A) A law was passed in 1913 that made it illegal to sell the same good or service to different people for different prices. B) This is a section of the Sherman Act that forced trusts (for example, the Standard Oil Company) to charge the same price for the same good or service in different states. C) Foreign companies should not be allowed to sell a product in the United States for prices different from prices these companies charge in other countries. D) Identical products should sell for the same price everywhere.
The International Monetary System was established
A) by the United Nations. B) by the Bretton Woods Agreement. C) by the United States, in cooperation with Great Britain. D) during the Great Depression by the League of Nations.
If a bank’s assets are $500 million and its liabilities are $380 million, then its net worth (bank capital) is ____________________. If the bank’s assets then rise by 6 percent at the same time that its liabilities rise by 5 percent, the percentage change in the bank’s net worth will be approximately _______________ percent.
A. $440 million; 10.2 B. $120 million; 1.2 C. $100 million; 11.2 D. $120 million; 9.2