The primary motivation for private foreign investment in developing nations is
A. the potential for high rates of return.
B. to do research in countries with fewer social regulations.
C. to improve the standard of living for workers.
D. to eradicate poverty.
Answer: A
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If the U.S. government places tariffs on imports from countries that have been accused of deliberately undervaluing their currencies, the price of these imports will ________ and the demand for the undervalued currency will ________
A) rise; fall B) fall; rise C) rise; rise D) fall; fall
If Happy Cows contractually requires distributors who purchase Happy Cows' milk to also purchase Happy Cows' cream, this is an example of ________.
A) territorial confinement B) a tying arrangement C) exclusive dealing D) a requirements contract
During the presidential campaigns, the candidates from each party typically describe their plans to maintain or change federal taxes on personal and business income. Are these policy statements generally positive or normative?
A) Positive B) Normative C) Both positive and normative D) Neither positive or normative
Explain whether a firm’s decisions are optimal if economic profit is (a) positive, (b) zero, or (c) negative.
What will be an ideal response?