If the world real interest rate falls, then a country that is an international lender Select one: O A. changes from being a net foreign lender to a net foreign borrower. B. does not change the amount of its lending. C. decreases the amount of its lending. O D. increases the amount of its lending. O E. none of the above
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- The Central African Republic has a GDP of 1,107,689 million CFA francs and a population of 4.862 million. The exchange rate is 284.681CFA francs per dollar. Calculate the GDP per capital of Central African Republic.If a country is an international borrower, then its domestic real interested rate is _________ the international real interested rate. a. Higher than b. lower than c. the same d. uncertainDescribe 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?
- What are foreign bonds? Explain the function of Global Capital Market.Select all that are true given an increase in foreign investment from the domestic economy: A. Domestic economic growth (GDP) increases, ceteris paribus B. Investment from the domestic economy to the foreign economy decreases C. The domestic currency depreciateshow is the balance of payments linked to national saving and investment? explain.
- 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 importsThailand is a net-importer. This means that they import more than they export. How does this affect the value of their currency with respect to foreign exchange? a. None of these b. their currency will become weak c. their currency will not be affected d. their currency will become strongWhat is Foreign Direct Investment (FDI) all about?
- You have the following annual figures for the New Zealand economy. Investment expenditure $42.5 billion Government savings -$1.7 billion If the current account balance was equal to zero then private savings must be $____billon (use 1 d.p.).How do wars and pandemics affect a country's nominal exchange rate, interest rate, and production?(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.