Chapter 2, Problem 5BIC

Which of the following involves a financial outflow from the U.S. economy?   a. returns paid on U.S. investments in France   b. returns paid on U.S. investments in France   c. Chinese investors buy real estate across the U.S.   d. U.S. firms buying logging rights to China's forests

Boseman is also considering making the entry into the international market by engaging in foreign direct investments in the nations. Which one of the following is not a true statement regarding foreign direct investment from the host country’s perspective?  a.Significant financial inflows always result from engaging in foreign direct investment. b.Foreign direct investment can create new jobs and can generate tax revenues for governments c.A concern of the local governments in host countries is the lack of corporate social responsibility d.There is the potential for exploitation of human labor within certain countries e.These investments may take the form of plants, buildings, or inventories

Ghana continues to face challenges with the Cedi depreciation and chronic current account deficits, you as an accomplished international financial manager of your company have been retained to provide medium-term recommendations to solve this age-old international economic problem. Required;Use the balance of payment- BOP- FRAMEWORK MODEL as a background in your policy paper. Your policy paper should be addressed to the Governor of the Bank of Ghana.