Which of the following is an example of U.S. foreign direct investment?
a. A Chinese company opens a restaurant in the U.S.
b. An Australian bank buys stocks issued by a U.S. corporation.
c. A U.S. bank buys bonds issued by an Australian corporation.
d. A U.S. company opens an auto parts factory in Canada.
d
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According to the graph shown, if the government restricts free trade, area G represents:
This graph demonstrates the domestic demand and supply for a good, as well as a quota and the world price
for that good.
A. quota rents, which go to domestic producers.
B. quota rents, which go to foreign firms or governments.
C. government tax revenues, which go to the domestic government.
D. government tax revenues, which go to the foreign government.
Which one of the following statements concerning the National Bank Act is not true?
a. It created a national banking system. b. It created the office of the Comptroller of the Currency. c. It required banks to provide financial reports to the Comptroller of the Currency. d. It created nationally chartered banks. e. It allowed banks to accept real estate as loan collateral.
If the total budget deficit is $200 billion and the deficit at full employment is $120 billion, then the
A. Structural deficit is $80 billion. B. Cyclical deficit is $120 billion. C. Cyclical deficit is $80 billion. D. Structural deficit is $320 billion.
When competition is present and private ownership rights are clearly defined and securely enforced by the legal system, business firms will have a strong incentive to
A) innovate and develop better products and lower cost production methods. B) engage in wasteful activities that increase the cost of producing goods and services. C) use resources during the current period rather than conserving them for the future. D) spend time attempting to plunder (take) the resources of others.