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Brief Principles of Macroeconomics...

8th Edition
N. Gregory Mankiw
ISBN: 9781337091985

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BuyFindarrow_forward

Brief Principles of Macroeconomics...

8th Edition
N. Gregory Mankiw
ISBN: 9781337091985
Textbook Problem

How would the following transactions affect U.S. net capital outflow? Also, state whether each involves direct investment or portfolio investment.

a. An American cellular phone company establishes an office in the Czech Republic.

b. Harrods of London sells stock to the General Electric pension fund.

c. Honda expands its factory in Marysville, Ohio.

d. A Fidelity mutual fund sells its Volkswagen stock to a French investor.

Subpart (a):

To determine

Effect of US net capital outflow.

Explanation

An American cellular phone company that establishes an office in the Czech Republic will increase the net ...

Subpart (b):

To determine

Effect of US net capital outflow.

Subpart (c):

To determine

Effect of US net capital outflow.

Subpart (d):

To determine

Effect of US net capital outflow.

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