Foreign direct investment that takes the form of a new startup facility is called:
a. acquisition FDI.
b. greenfield FDI.
c. intermediary FDI.
d. brownfield FDI.
Answer: b. greenfield FDI.
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A country must have absolute advantage in a good in order to have comparative advantage in that good
Indicate whether the statement is true or false
Which of the following is most likely to cause interest rates to fall?
A) Government borrows to finance a war. B) All firms project higher future revenue streams for all of their projects. C) All firms project lower future revenue streams for all of their projects. D) Government institutes a high tax on savings.
When the price level goes up, the purchasing power of the dollar
A) varies directly with the value of the euro. B) remains constant. C) also increases. D) falls.
Subsidizing coal mining and orange growing have both been found to be economically inefficient in that the costs outweigh the benefits. However, a subsidy on coal mining would help the coal producers in West Virginia and a subsidy on orange growing would help the orange farmers in Florida. So the senator from West Virginia approaches the senator from Florida and says that he will vote for the
orange subsidy if the Florida senator votes for the coal-mining subsidy. The Florida senator agrees. Which term best describes what just happened? a. the shortsightedness effect b. logrolling c. the use of user charges d. the political voter theory