On what two factors does the return on a foreign investment depend?

Q: Explain why many industrialized countries do not often intervene in the foreign exchange market

A: The industrialized countries are countries that have a fully developed system of industries i.e. has…

Q: International economic flows are devoid of the trend of diversification. Select one: false False

A: Economic diversification is the shift toward a more diverse structure of domestic production and…

Q: what are three ways to harness foreign direct investment flowing into the extractive sector for the…

A: Foreign Direct Investment A foreign direct investment occurs when a business or investor from…

Q: Describe the difference between foreign direct investment and foreign portfolio investment. Who is…

A: The investment of foreign company or entity to a domestic company or entity is known as FDI (foreign…

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: A country with negative net capital outflow has a trade surplus. true  false

A: Trade surplus means excess of export over Import of goods and services . Trade surplus indicates…

Q: What are the benefits and costs associated with foreign portfolio investment (FPI)?

A: Investments refer to the process of people or firms using some saved up money for further production…

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: Explain briefly what international investment law does. Why is it important? Is it a good or bad…

A: Investing means putting money into something with the prospect of a future benefit or return. To put…

Q: In your opinion, how can we attract new foreign investors to our country in order to develop our…

A: Foreign investment refers to a situation when the individual from a foreign country invest in…

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: 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: Explain four factors why China is among the huge recipients of foreign direct investment.

A: Foreign direct investment is the type of investment made by one country into the business of another…

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

A: Financial flows refer to the movement of financial capital, such as money for investments from…

Q: What would be the direction of foreign direct investment (FDI)? Use a world-capital-market graph to…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Which is an example of foreign portfolio investment?   a. Australian tourists going on a safari in…

A: Foreign investments in a country often are of two categories namely: Foreign direct investment…

Q: Does Foreign direct investment benefit all stakeholders. Discuss

A: When an investment is made from a party being in one country into business in another country having…

Q: Has trade deficit impacted the U.S. economic growth?

A: In international trade, different countries of the world import and export goods and services from…

Q: How a devaluation may reduce the trade deficit of a country? What condition is required to reduce…

A: Devaluation is the fall in the value of a country's currency. As a result of fall in exchange rate,…

Q: What is it called when country import prices gain relative to that of its export prices?

A: Terms of trade (TOT) address the proportion between a nation's fare costs and its import costs. At…

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: 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: , how can economic growth affect the value of a country’s imports?

A: Trade is defined as the exchange of commodities and services across the boundary of the country.

Q: Why does a recession cause a trade deficit to increase?

A: A recession is a situation that curbs the economy and follows a downturn to the economic growth and…