Which of the following statements is true concerning the global flow of foreign direct investment (FDI) since 1990?
A. Mexico has received more FDI inflows than has the United States.
B. FDI flows into and within the European Union fell.
C. The proportion of global FDI that flowed into the United States increased.
D. The proportion of global FDI that flowed into developing countries increased.
Answer: D
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When policy makers decide to revalue the currency, such an action generally represents
A) an increase in the pegged value of the domestic currency. B) a decision to let the currency float. C) a reduction in the foreign price level. D) an increase in the domestic price level. E) none of the above
Consider a society facing the production possibilities curves in the figure shown. What is the most likely cause of a society moving from PPF1 to PPF2?
A. More workers B. Better sewing technology C. Better printing press technology D. A desire to read more books
GDP does not include which of the following activities?
A. Businesses installing anti-pollution equipment B. Households spending to enhance security of their neighborhoods C. Couples remodeling their own homes D. Families eating out in restaurants
The following situation is an example of an export promotion strategy. Guatemala has a comparative advantage in the production of bananas and, as a result, the Guatemalan government grants incentives to banana growers to improve their performance in the international marketplace.
Answer the following statement true (T) or false (F)