If an American-based firm opens and operates a factory in China, then it is engaging in
a. foreign portfolio investment.
b. foreign financial investment.
c. foreign direct investment.
d. indirect foreign investment.
c
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The best explanation for the late 1994/early 1995 collapse of the Mexican peso and stock market is
(a) free movement of capital internationally is destabilizing for a developing country. (b) portfolio investments were camouflaging overvalued exchange rates. (c) debt for equity swaps had created imbalances in the ownership structure of the economy. (d) the potential benefits of NAFTA had been oversold.
Assume a baseball player's development in the minor leagues yields -$250,000 per year for four years
If the player were to have a single big league season and be paid $350,000, how much revenue would the player need to generate to be considered a positive net present value project from the point of view of the team owner if the interest rate was 4%? A) $1.45 million B) $2.5 million C) $350,000 D) $250,000
The threat of confiscated private property diminishes the incentive to invest
a. True b. False Indicate whether the statement is true or false
A tax is imposed on a certain good. The tax produces revenue of $5,000 for the government. The tax reduces consumer surplus by $3,000 and it reduces producer surplus by $4,000 . What is the amount of the deadweight loss of the tax?