Foreign direct investment that takes the form of purchasing an existing plant is often called:
a. acquisition FDI.
b. greenfield FDI.
c. requisition FDI.
d. brownstone FDI.
Ans: a. acquisition FDI.
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Cost-plus pricing would be consistent with selecting the profit-maximizing price when
A) the demand for the firm's product is unit elastic. B) consumers value the product beyond its marginal cost. C) a firm has no difficulty estimating its demand curve. D) it results in a price that causes quantity sold to be where marginal revenue equals marginal cost.
Firms in a monopolistically competitive market face ________ demand curves and earn ________ economic profits in the long run
A) downward sloping; zero B) downward sloping; positive C) horizontal; zero D) horizontal; negative
Assuming the standard assumptions, in a repeated-play ultimatum game, the first player's best strategy in the last round is to:
A. split the money evenly with a bit more going to him or herself. B. take all the money for oneself. C. give the most money to the opponent. D. give the most money to oneself.
The bulk of the exports from developing countries comprises of:
a. manufactured goods. b. finished goods. c. raw materials. d. services.