INTERNATIONAL TRADE   Which of the following are direct foreign investments? Explain your answer.  i. An American company buys another American company; stockholders in the bought-US company sell their shares on FOREX.  ii. A Turkish company builds a factory in Ethiopia and manages the factory as a contractor to the Turkish government.

Q: Suppose that the rest of the world experiences an economic boom causing an increase in foreign…

A: suppose rest of the world experiences economic boom due to increase in foreign output because…

Q: International financial capital flows into the United States come from: а. income that is not spent…

A: International financial capital flows into the United States is the money invested into the United…

Q: If a country's savings remain constant and the trade balance (net exports) increases, then: A) GDP…

A: The GDP of a country is given by - Y = C + I + G + NX  where C = consumption expenditure I =…

Q: State whether each of the following events involves a financial flow to the U.S. economy or away…

A: An export sales to Germany involves a financial flow to the U.S. economy from Germany. The returns…

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: Assume that you are a senior manager in a U.S. automobile company considering investing in…

A: For the development of a nation, foreign capital is necessary as it fills the huge technological gap…

Q: List TWO disadvantages of foreign investments.

A: Answer: Foreign investment: It refers to the investment in the companies and assets of a country…

Q: Which of the following would be U.S. foreign direct investment?     A. A U.S. canning factory opens…

A: Foreign direct investment refers to a direct investment made by one firm of a country in a foreign…

Q: What are the benefits of direct foreign investment?

A: The flow of goods, services, and capital across national borders is referred to as international…

Q: Foreign direct investment is the term used to describe purchases of firms in another country that…

A: Investments made by a domestic entity into a foreign entity is known as foreign direct investment.…

Q: Identify whether the given items are examples of imports, exports, or neither. Assume the United…

A: Export refers to trading of goods and services from domestic country to foreign country. Import…

Q: Countries with the highest ratios of trade to GDP, calculated as (imports + exports)/2, tend to…

A: b Highest gains from trade   Trade-to-GDP ratio is refer to the indicator in the relative…

Q: Occasionally, a government official will argue that a country should strive for both a trade surplus…

A: Trade surplus: It shows the positive balance of trade in which the exports are more than the import…

Q: Your island economy has been thriving for many years now, and has grown large, with many people,…

A: Introduction GDP of a Island is equal to C+ I+ G + NX, here C is the consumption, I is the…

Q: How can the following below affect tourism industry? a. Lack of international representation b.…

A: a) Tourism may be characterized as a type of capitalist economy that sells more than just things; it…

Q: Occasionally, a government official will argue that a country should strive for both a trade surplus…

A: The government officials targets to improve the economic situation by increasing trade surplus and…

Q: State whether each of the following events involves a financial flow to the Mexican economy or a…

A: Before we answer the above question, let us first understand some key concepts regarding financial…

Q: List two advantages Chile face by using foreign investment.

A: Chile is one of the emerging countries of the world. It is ranked as 17th largest FDI recipient of…

Q: A country whose National Saving is greater than its Investment will experience a Not enough…

A: In economics, savings refer to the income unsued. In other words, savings means income left after…

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: Japan generally runs a significant trade surplus.  Do you think this is most related to high foreign…

A: Answer: Correct option: High Japanese saving rate relative to Japanese investment.

Q: Discuss the role of foreign exchange in international trade.

A: The measure which depicts the value of one currency in terms of another currency is known as the…

Q: Policies that ......... tend to cause .............. (QUESTİON MAY HAVE MORE THAN ONE CORRECT…

A: The policies that cause an increase in investment will be followed by the deficit in the trade…

Q: INTERNATIONAL TRADE Which of the following are direct foreign investments? Explain your answer.…

A: Direct Foreign Investment is a buying process of an interest in a company by another company or an…

Q: What are the main Malaysia export to British private investors? a. Rubber and palm oil. b. Tin and…

A: The main Malaysia export to British private investor is rubber and palm oil as we can see that palm…

Q: Of the following, which is NOT an emerging-market?     a. Brazil   b. India   c. Australia   d.…

A: Emerging markets are the countries that are already enjoying rapid economic growth and has advanced…

Q: A country whose National Saving is greater than its Investment will experience a ) Trade deficit (IM…

A: Trade surplus occurs when exports (X) exceed the imports (IM). Trade deficit occurs when imports…

Q: True or False. And why? Suppose the US is a more capital-abundant economy than China. We would…

A: This question requires knowledge of Heckscher-Ohlin model  which is an economic theory that states…

Q: Which of the following are direct foreign investments? Explain your answer.     i. A Chinese…

A: Foreign direct investment FDI is a purchase of an asset (partially or completely) by an entity which…

Q: tends to discourage firms from making physical capital investments. O Government borrowing O Large…

A: Physical capital includes tangible and man-made objects that a firm purchases or invests in for the…

Q: A government official announces a new policy. The country wishes to eliminate its trade deficit, but…

A: An administration official declares another strategy. The goal is to take out its import/export…

Q: Who is harmed by a stronger domestic currency? Foreign Investors US Exporters US Tourists US…

A: When the domesic currency of a country gains strength it suggests that the country has gained…

Q: Advancing technology and falling trade barriers have created more international business…

A: Advancing technology and falling trade barriers have created more international business…

Q: Classify the following transactions as domestic investment, foreign portfolio investment or FDI. (c)…

A: Foreign investment alludes to the investment in homegrown organizations and resources of one more…

Q: Which of the following is an example of foreign direct investment from the United States to Mexico?…

A: Answer: Foreign direct investment: FDI refers to the investment by an investor in any foreign…