Macroeconomics: Private and Public Choice
15th Edition
ISBN: 9781305176799
Author: Gwartney
Publisher: Cengage
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Chapter 19, Problem 8CQ
To determine
Impact of foreign capital inflow on the economy's capital formation.
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Explain four factors why China is among the huge recipients of foreign direct investment.
Explain briefly what international investment law
does. Why is it important? Is it a good or bad
thing?
What are the benefits of direct foreign investment?
Chapter 19 Solutions
Macroeconomics: Private and Public Choice
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- GE Appliance Park in Louisville has been sold to Haier, a Chinese company. What form of Foreign Direct Investment is it for Haier?arrow_forwardASSESS HOW FIRMS CAN REDUCE THEIR COST OF CAPITAL BY TAPPING INTO MORE DEVELOPED FOREIGN CAPITAL MARKETSarrow_forwardEffect of fiscal and monetary policy on foreign direct investment in Zimbabwearrow_forward
- Government has resorted to external borrowing to fund government projects such as infrastructure and rural development. These resulted to promoting the market for foreign good. Is it better to expand or limit foreign borrowing for the development of technology in the country? Explainarrow_forwardAssume that you are a senior manager in a U.S. automobile company considering investing in production facilities in China, Russia or Germany. These facilities will serve the local market demand. Evaluate the benefits, costs, and risks associated with doing business in each nation. Which country seems to be the most attractive target for foreign direct investment? Why?arrow_forward
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