Which of the following statements is true?
a. Multinational firms tend to reduce the flow of technology between countries.
b. Most foreign direct investment is found in labor-intensive industries.
c. Multinationals do not always help to reduce the trade deficit of the host country.
d. Foreign firms contribute to a significant increase in the host country's unemployment rate.
e. Foreign direct investment reduces the stock of capital of the domestic country.
c
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In general does international diversification benefit investors?
A) yes, because it allows them to diversify their risk across many countries B) no, because it creates the additional problem of country risk C) yes, because it enables much greater profits through arbitrage opportunities D) no, because it subjects them to legal regulation in additional markets
Which of the following is not an example of an externality?
a. Drunk drivers raise everyone's auto insurance premiums. b. The price of lumber increases as lumberjacks' wages increase. c. The neighbor's beautiful front yard increases your home value. d. Someone drives a car that emits thick black smoke. e. People who live near a bakery enjoy the smell of freshly baked bread.
Compared to people in other nations, people in the United States pay
a. much higher taxes. b. somewhat higher taxes, on average. c. about the same amount taxes. d. lower taxes.
Refer to the figures above. Suppose the graphs represent the demand for use of a local golf course for which there is no significant competition (it has a local monopoly). P denotes the price of a round of golf and Q is the quantity of rounds sold each day. If the left graph represents the demand during weekdays and the right graph the weekend demand, then over the course of a full seven-day week this price-discriminating, profit-maximizing golf course should sell a total of:
A. 1200 rounds. B. 900 rounds. C. 740 rounds. D. 300 rounds.