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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.

BuyFind

Brief Principles of Macroeconomics...

8th Edition
N. Gregory Mankiw
Publisher: Cengage Learning
ISBN: 9781337091985
BuyFind

Brief Principles of Macroeconomics...

8th Edition
N. Gregory Mankiw
Publisher: Cengage Learning
ISBN: 9781337091985

Solutions

Chapter
Section
Chapter 13, Problem 4PA
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.

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