Foreign Direct Investment results in the following benefits: Select one: a. Higher productivity b. Increase the economy’s stock of capital c. Tax efficiency d. Increase the economy’s stock of capital AND Higher productivity

Foreign Direct Investment results in the following benefits: Select one: a. Higher productivity b. Increase the economy’s stock of capital c. Tax efficiency d. Increase the economy’s stock of capital AND Higher productivity

Principles of Macroeconomics (MindTap Course List)

7th Edition

ISBN:9781285165912

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: Open-Economy Macroeconomics: Basic Concepts

Section: Chapter Questions

Problem 3QCMC

See similar textbooks

Related questions

Q: 4. Since more capital allows more output to be produced, it is always better for a country to have…

A: In economics, capital can be understood as all those men-made goods and services that are used in…

Q: Comparison of china and taiwan in economic aspect

A: China and Taiwan are two Asian powerhouses that were once part of the same nation. Post the world…

Q: What are the benefits of foreign direct investment to a recipient nation? Explain?

A: Foreign direct investment (FDI) refers to investment by a foreign company in the domestic market by…

Q: Question 30 The major cost of large capital inflows to a country is O ikely high amount of interest…

A: When talking about capital inflows, it refers to the movement of funds from the rest of the world to…

Q: (a) Explain what productivity measures.

A: We will answer the first question since the exact one was not specified. Please submit a new…

Q: 2. a. Calculate the growth rate of economy for the year 2019 (one digit after point is sufficient in…

A: Gross domestic product (GDP) refers to the total value of all goods and services produced in the…

Q: e. Trade Representative: "In an open economy with international trade, government spending is much…

A: The policies of a country on international trade and financial markets determine whether it is an…

Q: Openness of an economy is: the extent to which a country is involved in international trade and…

A: In economics, an open market is such that there is no trade barriers like tariffs, taxes or…

Q: 3) Explain the positive and negative aspects of Foreign Direct Investment (FDI) for developing…

A: Foreign Direct Investments Foreign direct investment is the purchase of a company's stock by a…

Q: Table 1 Transaction Balance of Payments Transactions (Year 2022) number Amount 1 Interest paid by a…

A: The difference between the value of a nation's net imports and net exports over a particular time…

Q: What are some potential negative impacts that IMF may have on a lesser developed country

A: IMF is an organization at the international level that promotes economic growth globally and…

Q: Susan, a U.S. citizen, builds and operates a kennel in France. This action is an example of a,…

A: Basics:- Foreign Direct Investment(FDI) is used for physical assets like land while Foreign…

Q: In an open economy, why is the supply of loanable funds upward sloping? a) A higher real interest…

A: In the loanable funds market, the supply of these funds are made by the consumers or households of…

Q: The following figure shows the demand and supply curve for capital market. Find the price of…

A: In the above figure, Sk represents the capital-goods . The function starts at Pm, or the lowest…

Q: challenges Malaysia faces in global business?

A: Malaysia is a country in the Southeast part of Asia. It is well known for its beaches, and mix of…

Q: What are the reasons to invest in the Philippines? Explain

A: Reasons to invest in the Philippines are as follow:- Liberal and business-friendly economy- In this…

Q: 1. Derive the law of motion of capital per capita. 2. Derive the steady state levels of capital and…

A: *Answer:

Q: Assume an economy without population growth or technological progress. Their production function is…

A: The relationship between capital, savings and population is explained by the Solow growth model

Q: Q.7.2 Use the following composition of expenditure for the economy of a country named the Republic…

A: We are going to calculate Gross domestic expenditure to answer this question.

Q: 4- Summarize the Venezuela economy and oil dependency as an example of Capital Flight.

A: In mid-2014, global oil prices fell and Venezuela's economy entered a free fall. Yet Venezuela…

Q: What is International Monetary Fund? Explain how it works for the economic development of member…

A: The International Monetary Fund (IMF) is a global association financed to a great extent by…

Q: All else equal, a higher rate of return on investment in a country will do which of the following?…

A: Exchange rate is determined by the intersection of dd(demand) and ss(supply) of the currency in the…

Q: Consider the following open economy. Real GDP 1,000 Consumption 778 Government Expenditures 144…

A: When the economy is in equilibrium, the leakages must be equal to injections. Leakages are taxes,…

Q: 20) Which of the following was established by the industrialized nations in 1946 to loan money to…

A: An international financial institution is an organization established by two or more sovereign…

Q: Explain how opening up, freeing economy, or allowing foreign investor to invest in the Philippines…

A: Philipines economy is one of the dynamic economy of East Asia Pacific region that is open to trade…

Q: Foreign Direct Investment results in the following benefits: Select one: a. State of the art…

A: Foreign direct investment is investment made by an individual or a company of a nation in the…

Q: hi dear i have some research questions for international business. England Type of economic system…

A: Type of economic system in England The UK economy is both a social market and a market-oriented…

Q: Which of the following policies would likely increase productivity all else the same? A increasing…

A: At the marketplace, productivity refers to the total amount of goods and services produced with the…

Q: 1. In the mid- to late-20th century, East Asian developmental states successfully intervened in the…

A: Basics:- Basically, state capitalism is commonly used model in East Asia to sustain growth. East…

Q: Explain specifically how a microeconomic concept you learned in Economy be applied to your everyday…

A: Economy refers to the place or area in which the various everyday transactions take place such as…

Q: The following figure shows the demand and supply curve for capital market. Find the price of…

A: In the above figure, Sk represents the capital-goods . The function starts at Pm, or the lowest…

Q: A country has a net foreign investment of $-5 Trillion? What does this mean?

A: Balance of Payment refers to the systematic record of all economic transactions between the…

Q: Write an essay on how the 2 factors ,unemployee and decrese of export give impact to economic…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: QUESTION 1 Assume a Cobb-Douglas production with capital share 1/3; total factor productivity equal…

A: Since you have posted multiple questions, we will solve the first one for you. If you want any…

Q: Economics Why is international finance desirable to borrowing countries? a. International…

A: (Q) Why is international finance desirable to borrowing countries? a. International finance allows…

Q: No GCC country has a faster expanding economy than Qatar – Explain why

A: Macroeconomics is a sub-part of economics that is used to understand, the policies and fiscal…

Q: The value of what KFC produces in Japan is included in the U.S. and in the Japanese Select one: a.…

A: Gross Domestic Product (GDP) includes the value of goods and services that are produced within the…

Q: Question 1 (a) Explain what productivity measures. (b) List and describe 3 factors of labour…

A: 'Since you have asked multiple questions, we will solve the first question for you. If you want the…

Q: You are given the following information about an economy: Gross private domestic investment = 40…

A: As there are many parts to this question, only first three would be solved. In order to get the…

Q: Why foreign borrowings is preferred?

A: A government, company, or private household may borrow money from the government or private lenders…

Q: Since more capital allows more output to be produced, it is always better for a country to have (and…

A: Capital, in the eyes of an economist, usually refers to liquid assets. To put it in another way,…

Question

Foreign Direct Investment results in the following benefits:

Select one:

a. Higher productivity

b. Increase the economy’s stock of capital

c. Tax efficiency

d. Increase the economy’s stock of capital AND Higher productivity

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

what is the importance of Foreign direct investment (FDI) to an agriculture-producing country what are some of the macroenvironmental factors that can affect the lucrativeness of the an agriculture-producing country to foreign investors what are some challenges that investors face in doing business in an agriculture-producing country what are some possible strategies that can be used to make an agriculture-producing country attractive to foreign investors.
List and explain two arguments for and two against Foreign Direct Investment?
Give an examples and non-examaples of foreign direct investment
A country's investment can be financed by ________. a. a government budget surplus b. national saving and foreign borrowing c. only saving by households and firms d. making exports exceed imports
(a) Describe the difference between foreign direct investment and foreign portfolio investment. (b) Discuss how changes in local real interest rates and foreign interest rates impact the decision to carry out investment by (i) foreigners and (ii) locals.
a.What will be happened if the element of Diamond theory didn't interact each other? b.What are the agenda behind foreign direct investment?
A. Giving two (2) examples, compare Foreign Direct Investments with Foreign Portfolio Investments. B. State your understanding of political risks in international business. Differentiate between macro and micro political risks, giving two (2) examples of each.
Describe the difference between foreign direct investment and foreign portfolio investment. Who is more likely to engage in foreign direct investment – a corporation or an individual investor? Who is more likely to engage in foreign portfolio investment?
(b) Discuss how changes in local real interest rates and foreign interest rates impact the decision to carry out investment by (i) foreigners and (ii) locals.
7 Foreign Direct Investment is an insignificant source of capital inflow into developing countries a. True b. False
What are the benefits of foreign direct investment to a recipient nation? Explain?
All else equal, a higher rate of return on investment in a country will do which of the following? a) increase the pace of outsourcing b) spark a recession c) increase the exchange rate for its currency d) push up the productivity of its workers