An example of foreign direct investment is the
A. domestic acquisition of less than 10 percent of a foreign company.
B. purchase of livestock from abroad.
C. sale of insurance in a foreign nation.
D. foreign purchase of an entire domestic company.
Answer: D
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When one person consumes a nonexcludable good,
a. others cannot be prevented from also consuming it. b. it can be provided to others for no additional cost. c. the amount available for others to consume is reduced. d. any other users will receive zero economic rent from it.
If there exists a shortage in the market for snowmobiles, then the price of a snowmobile will
A) rise. B) fall. C) neither rise nor fall. D) at first fall then rise.
In the opening of free trade, if world prices of a good are less than domestic prices of that same good,
a. domestic consumers will experience a loss of surplus. b. domestic prices will drop to the world price level. c. all domestic producers of that good will try to find another market because they can't compete with foreign producers. d. domestic producers will increase the quantity supplied in order to crowd out the foreign-produced good.
Real estate is defined as land and its permanent improvements. Which of the following is an example of an improvement to the land?
A. Fence B. Building C. Sewer system D. Personal property