Describe the difference between foreign direct investment and foreign portfolio investment. Who is more likely to engage in foreign direct investment – a corporation or an individual investor? Who is more likely to engage in foreign portfolio investment?

Q: Discuss how changes in local real interest rates and foreign interest rates impact the decision to…

A: If the local or foreign rate of interest changes that will impact the local and foreign investment.

Q: Would each of the following transactions be included in net exports or net capital outflow? Be sure…

A: Net exports = Exports - Imports.

Q: Which of the following increases the supply of foreign exchange? a. Investments of capital in…

A: Investment in foreign country increases the demand for foreign currency, and increases the supply of…

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: fast plz 28- Which of the following increases the supply of foreign exchange? a. Import of goods…

A: The demand and supply of foreign exchange determine the price of foreign exchange. Just like the…

Q: how is the balance of payments linked to national saving and investment? explain.

A: Balance of Payment: The systematic track record of the economic transactions between the public or…

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: Suppose that US citizens start saving more. What does this imply about the supply of loanable funds…

A: The impact of saving on real rate of interest is illustrated below:

Q: How do changes in local real interest rates and foreign interest rates impact the decision to carry…

A: The level of interest rate in an economy can help determine the level of demand in that economy. The…

Q: At the end of 2016, foreign investors owned over $8 trillion more of U.S. assets than U.S. investors…

A: A country is said to be a net debtor when it faces relatively more foreign liabilities than foreign…

Q: Effect of Foreign Interest Rates - Peter Thiel. If foreign interest rates rise, this will cause the…

A: If foreign interest rates rise, this will cause the net capital outflow to increase. Because,…

Q: 12. Imagine that you are the manager of a company considering direct foreign investment. What…

A: 12) As a manager of a firm considering FDI, a person would choose the country with the lowest…

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: when a domestic investor buys a foreign asset, the financial account would rise, stay the same or…

A: When a domestic investor buys a foreign asset ,  the financial account status can be explained as…

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: 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: Government has resorted to external borrowing to fund government projects such as infrastructure and…

A: Foreign borrowing refers to the borrowings from foreign lenders to fund the various expenditures of…

Q: A country recently had $800 billion worth of domestic investment and its residents purchased $400…

A: Domestic investment of the country is given as $800 billion.   The residents of the country…

Q: How can foreign exchange rates impact a business positively? How can foreign exchange rates have a…

A: Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: Calculate net exports and the amount of net foreign lending for a hypothetical small open economy…

A: Savings = Investment + Net Export Savings = $145 billion Investment = $118 billion   Therefore,  Net…

Q: Polikesa, a country in North Africa, has vast reserves of uranium. However, due to strict business…

A: Answer: option D (by making regulatory reforms) Explanation: The government can make regulatory…

Q: Which of the following is included in a nation's current account? a) Purchases of foreign assets b)…

A: Bop , which stands for balance of payments, is the way a country makes record of its economic…

Q: 3)  State whether each of the following events involves a financial flow to the U.S. economy or away…

A: Financial flow includes cash inflow. It implies flowing of cash inside the economy. Cash outflow…

Q: Indicate whether each of the following transactions represents an increase in net exports, a…

A: 1) A German citizen buys an Apple computer: As apple is a company of the U.S, a citizen of German…

Q: Would each of the following transactions be includedin U.S. net exports or in U.S. net capital…

A: Net exports are the difference between the country's exports and imports.  Net capital outflow…

Q: Suppose that government of Pakistan is considering an investment tax credit. i. How would this…

A: An increase in investment will shift the investment curve to right, increasing interest rate and…

Q: Who benefits from an appreciation of the Swiss Franc? Who benefits from a depreciation of the Swiss…

A: The Swiss Franc is the currency and legal tender of Switzerland and Liechtenstein. Currency…

Q: Imagine that the U.S. economy finds itself in the following situation: a government budget deficit…

A: Given information:

Q: 8. State whether each of the following events involves a financial flow to the U.S. economy or away…

A: The balance of payments of the country would consist of the two accounts namely the current account…

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: Identify the impact of a Foreign Direct Investment inflow on the following factors. Please explain…

A: Answer - Need to find- Identify the impact of a Foreign Direct Investment inflow on the following…

Q: What are the main forms through which foreign capital flows in Malaysia? Discuss the evolution of…

A: Foreign Direct Investment (FDI) is critical for a country's economic development and progress. To…

Q: Using the table below, Calculate the Net Barter term of trade for each year using 2010 as the base…

A: Using the table below, Calculate the Net Barter term of trade for each year using 2010 as the base…