If you invest in a foreign company by buying 28 percent of its shares of stock, you have engaged in
A) portfolio investment.
B) moral hazard.
C) foreign direct investment.
D) adverse selection.
C
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If the Fed sells a U.S. Treasury bill to a member of the public, the banking system has
a. less reserves and the money supply tends to fall. b. more reserves and the money supply tends to fall. c. less reserves and the money supply tends to grow. d. more reserves and the money supply tends to grow.
Superstar professional athletes can sustain their economic rents because:
A. team owners will pay anything to win a championship. B. their opportunity costs of playing their sport are high. C. they are represented by highly-skilled agents. D. they have unique talents that they can sell to the highest bidder.
The congressional act passed in 1978 that established specific numerical goals for the unemployment rate and the inflation rate to be achieved by 1983 was the
A) Federal Reserve Act. B) Gramm-Rudman Act. C) Employment Act. D) Humphrey-Hawkins Act.
How could you use the Case theorem to predict what would happen when smoke from a factory creates dirty air and slightly acid rain for all the residents in the area in a one-mile radius of the plant?
Please provide the best answer for the statement.