When an auto company owned entirely by German citizens open a new factory in the USA, this is considered a foreign direct investment. Select one: True
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- A.Foreign Direct Investment (FDI) is one of the riskiest forms of international investing. Describe a framework which describes why MNEs choose this FDI rather than alternative models. B. Explain the fundamental dilemma of international trade and describe the system that has evolved to protect both importer and exporter.quesiton Should DAMC consider other foreign investment strategies, like strategic alliance, jointventure etc. to enter other new markets/countries? Provide arguments in your favourMedium-answer Q2. Explain four factors why China is among the huge recipients of foreign direct investment.
- qualifier investment vs compete investment?Peru is growing relatively quickly and has begun to attract large inflows of foreign direct investment. While Peru relishes the benefit of the inflows, it is concerned about the potential negative effects if the foreign investors pull out their investments quickly. One particular reason for Peru to be concerned is that its banks have taken out large loans denominated in U.S. dollars and European euros from foreign banks. If the foreign direct investment is withdrawn quickly from Peru, what will be the effect on each of these items? A. Peru's money supply - B. Peru's exchange rate with other countries - C. Peru's exports - D. Peru's trade deficit - Answer Bank: No Effect, Increase or DecreaseConsider a country with production function , where y = 5k1/2, where y is the output per worker and k is capital per worker. Suppose the investment in capital occurs at a rate of 35% of income per worker every period, depreciation rate is 1.5% and population growth rate is 2%. Use excel to plot the production function, investment line and capital depletion line with k on the x-axis (use the attached spread sheet to draw your graphs). -attached spreadsheet shown below***** a. What is the steady state level of y and k. b. Suppose TFP increases by 20%. What happens to the steady state y and k? c. Suppose the investment rate increases to 40%. What happens to the steady state y and k
- Countries X and Y are identical, except that the depreciation rate in country X is10%, and the depreciation rate in country Y is 20%. Then, _____ in the long run. the capital-labor ratio (K/N) will be greater in X than in Y the capital-labor ratio (K/N) in X will be the same as that in Y the capital-labor ratio (K/N) will be less in X than in YGE Appliance Park in Louisville has been sold to Haier, a Chinese company. What form of Foreign Direct Investment is it for Haier?Give an examples and non-examaples of foreign direct investment
- A source of variation to consider in valuing a cross-border M&A is _____. foreign currency exchange rates All of the above accounting principles the timing of cash remittanceIf a Canadian corporation sells a product to the United States and uses the proceeds to purchase a product manufactured in United States, then Canadian net exports _____, and net capital outflows _____.A U.S. mutual fund buys stock issued by a corporation in Colombia. A U.S. grocery store chain builds and manages a new warehouse in Honduras. Which one(s) of these is the foreign direct investment? Which one(s) would be taken into account when computing U.S. net capital outflows?