Factories owned by U.S. firms on the Mexican side of the U.S.-Mexico border are:

A. an important source of foreign direct investment in Mexico.
B. not an example of foreign direct investment in Mexico.
C. troubling for the Mexican government.
D. harmful to Mexico's efforts to increase their economic growth.


A. an important source of foreign direct investment in Mexico.

Economics

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Both optimization in levels and optimization in differences:

A) consider only the benefits from different alternatives. B) consider only the costs incurred in different alternatives. C) provide identical answers when comparing two alternatives. D) require the calculation of change in net benefits of switching from one alternative to another.

Economics

Efficiency in the provision of a public good is achieved when its

A) total social benefit equals its total social cost. B) average social benefit equals its average social cost. C) marginal social benefit equals its marginal social cost. D) marginal social benefit equals zero.

Economics

Economists usually use the term "recession" to refer to: a. any slowdown in the growth of real GDP

b. zero real GDP growth. c. two or more consecutive quarters of declining real GDP. d. a reduction in nominal GDP lasting more than six months.

Economics

Why does unemployment tend to change when the level of output changes?

A. Persons wish to buy things, and if output falls, people need to work less to earn the income to buy the smaller output. B. Labor is an input, and if output falls, employers need fewer workers to make it, so the employment falls. C. As output rises, more people are more interested in buying goods and services, and so these people work more to obtain the income needed to buy things. D. Persons face the option of buying or working, so that when they do more of one, the other necessarily falls. E. When companies replace workers with machines, output rises and people take more vacation time prior to returning to work.

Economics