Which of the following is an example of foreign direct investment? Select one: Ⓒa. A Brazilian firm opens a production plant in Argentina. O b. Chinese tourists visit the United States. O C. A business from Ontario, Canada, opens a production plant in Manitoba, Canada. Od. Italian savers buy British stocks.
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- Table 23.7 provides some hypothetical data on macroeconomic accounts for three countries represented by A. B, and C and measured in billions of currency units. In Table 23.7, private household saving is SH, tax revenue is T, government spending is G, and investment spending is Calculate the trade balance and the net inflow of foreign saving for each country. State whether each one has a trade surplus or deficit (or balanced trade). State whether each is a net lender or borrower internationally and explain.Which is an example of foreign portfolio investment? a. Australian tourists going on a safari in Kenya. b. Indonesian merchants selling coffee beans to Japanese importers. c. US consumers increasing their demand for German automobiles. d. Brazilian banks using pesos to buy stock in Mexican corporations.Which of the following are direct foreign investments, and which are not? Event a. A French company merges with an American company; stockholders in the U.S. company exchange their stock for shares in the French firm. b. The same Saudi businessman buys a New York apartment building. c. A Saudi businessman buys $10 million of IBM stock. Is this a direct foreign investment? d. An Italian firm builds a plant in Russia and manages the plant as a contractor to the Russian government. Yes Yes No No
- Which of the following would be U.S. foreign direct investment? A. A U.S. canning factory opens a plant in Ecuador. B. A Bolivian bank buys U.S. corporate bonds. C. A Polish company opens a shipbuilding plant in the United States. D. A U.S. bank buys Bolivian corporate bonds.Susan, a U.S. citizen, builds and operates a kennel in France. This action is an example of a, investment for Susan and U.S. foreign direct investment. O b. investment for Susan and U.S. foreign portfolio investment. O c. U.S. foreign direct investment and U.S. domestic investment. d. U.S. foreign portfolio investment and U.S. domestic investment.Which of the following is an example of U.S. foreign portfolio investment? Select one: a.Erica, a U.S. resident, buys bonds issued by the Swiss government. b.Neither A nor B are examples of U.S. portfolio investment. C.A U.S. legal office opens a branch office in Holland. d.Both A and B are examples of U.S. portfolio investment.
- Which of the following are direct foreign investments? Explain your answer. i. A Chinese company pays $6.49 million for a stake in the Hilton. ii. A Russian businessman buys $44 billion on FOREX. iii. An American company buys another American company; stockholders in the bought-US company sell their shares on FOREX. iv. A Turkish company builds a factory in Ethiopia and manages the factory as a contractor to the Turkish government.Which scenario best demonstrates foreign direct investment? Salia started a Polish restaurant in her home country, the United States, after she took cooking lessons from a well-known chef in Poland. Super Blooms, a reputable vegetable plant company in Holland, exports tomato, pepper, and potato garden plants across the globe. Ups n Downs Inc., a Chinese firm, supplies roller coaster components in the United States. Domesticity, a U.S.-based office furniture company, has set up its own assembly plant in Japan to cater to the needs of the Asian market. Lux Linens, a fabric conglomerate in the United States, imports raw silk from China and Italy.Sean and Paul are both local residents. Sean buys construction machinery from a company in the U.S. to use in his construction company in Jamaica. Paul opens a cafe in the U.K. Whose action is an example of foreign direct investment? Select one: a. Paul's but not Sean's. b. Neither Sean's nor Paul's. c. Sean's but not Paul's. d. Both Sean's and Paul's. 2. The theory of purchasing power parity cannot fully explain exchange rate movements because Select one: a. not all goods are identical in different countries b. monetary policy differs across countries c. some goods are not traded between countries d. both a and c e. both b and c
- In the foreign exchange market, when the U.S. interest rate rises, the supply of dollars ________ and the foreign exchange rate ________. A. decreases; rises B. increases; falls C. increases; rises D. increases; does not change E. decreases; fallsINTERNATIONAL TRADE Which of the following are direct foreign investments? Explain your answer. i. A Chinese company pays $6.49 million for a stake in the Hilton. ii. A Russian businessman buys $44 billion on FOREX.Which of the following is an example of foreign direct investment from the United States to Mexico? O Acquisition of a convenience store in Mexico City by a lawyer in Chicago on behalf of an American client. Sale of land in the U.S. by an American to a Mexican. O Deposit by an American professor of US dollars into a bank in Mexico. O Sale of land in Mexico by an American to a Mexican.