An example of U.S. foreign direct investment would be a:
A. factory in Japan owned by a Canadian citizen.
B. factory in Canada owned by a U.S. citizen.
C. factory in New Mexico owned by a Japanese citizen.
D. All of these are examples of foreign direct investment.
Answer: B
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Which of the following is likely to happen if the government decides to impose a tariff?
A) Domestic consumers will be better off. B) The revenue earned by the government will decrease. C) Domestic producers will face higher foreign competition. D) The domestic industry will earn higher profits.
Joe likes to sleep late in the mornings and play tennis in the afternoons. The opportunity cost of Joe attending his morning class for one hour is
A) an hour of tennis given u
Consider an adverse supply shock in the RBC model. The central bank knows that the pre-shock level of output
A) can be maintained only by reducing the money supply. B) can be maintained only by holding constant the money supply, C) can be maintained only by increasing the money supply. D) cannot be maintained by any monetary policy.
In terms of jobs gained and lost, economists believe that NAFTA has
A. succeeded unambiguously, in that millions of jobs have been created by free trade. B. failed unambiguously, in that millions of jobs have fled to Mexico. C. helped Canada much more than either Mexico or the United States. D. had little effect on job gains or losses as trade patterns are not easily identifiable with NAFTA.