16. Which of the following best describes the concept of foreign direct investment (FDI)? A) Investment made by acompany or individual in one country in business interests in another country B) Investment made by the government indomestic industries to promote economic growth C) Investment made by individuals in financial markets within theirown country D) Investment made by foreign governments in domestic industries to promote economic development

Approach to Solving the Question:To determine the correct answer, it's crucial to understand the…

Answered: 16. Which of the following best…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter29: Exchange Rates And International Capital Flows

Section: Chapter Questions

Problem 12RQ: What is the difference between foreign direct investment and portfolio investment?

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Which of the following statements are correct? state which ones are definitely incorrect and why. a. Capital grows when investment is higher than depreciation b. The growth rate of capital increases when investment is higher than depreciation c. For a given rate of depreciation of capital, a rise in the ratio of investment to capital will raise the growth rate of capital d. There are no rich countries wth low investment ratios, and no poor countries with high investment ratios e. A country can only invest more than it saves if it borrows from abroad. f. The scatter diagram of capital output ratios vs investment rates does not show a perfect correlation. Therefore there is something wrong with the model of the way capital grows g. A country that increases its saving rate will be able to have more rapid growth of capital for as long as it maintains this higher savig rate h. A country that increases its saving rate will be able to have more rapid…
Question 1Some data at first might seem puzzling: The share of GDP devoted to investment was similar for Country liberty and Country Techno from 1970 - 2001. However, during these same years Country Techno had a 6 percent growth rate of average annual income per person, while Country liberty had only a 2 percent growth rate. If the saving rates were the same, why were the growth rates so different?
7. Calculate the compound annual growth rates of goods exports and GDP of developed, developing countries, Canada and BRIC for the decade 2006-2016 (just use end years data to calculate the growth. Present your result either in a table or graphs. What do these growth rates tell about globalization vs. national economic growth rates for these groups? 8. How have US shares of Canada's exports, and imports of goods and services, and inward and outward FDI stock changed in the last two decades? Show with two graphs, one for trade and the other for FDI) Most of these data can be downloaded from World Bank, UNCTAD and CANSIM databases.
Explain the difference between foreign direct investment (FDI) and foreign portfolio investment (FPI)? Explain which one is more useful to accelerate economic growth of home country.
4. Assume no government and no international trade in a country. Show that measured savings is identical to measured investment.
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1. If domestic saving exceeds domestic investment, one would observe: (a) positive net capital outflow. (b) a trade deficit. (c) a government budget deficit. (d) none of the above.
In general, foreign entities: a. are borrowers of domestic (U.S.) loanable funds. b. require a greater inflation premium than domestic borrowers. c. are not concerned about the U.S. interest rate compared to their own, since it is illegal for them to lend in the United States. d. are lenders in the domestic (U.S.) loanable funds. e. require a smaller inflation premium than domes tic borrowers.
Answer both sir I have no more question sir please please? request sir
Briefly explain and critically evaluate the role of public and private investment in Pakistan. Also point out their role in achieving sustainable economic growth of Pakistan.
10. In Mankiw's model of a small open economy, domestio interest rates are set by the world's market for loanable funds, rather than by domestic saving and investment. a. What are the two simplifying assumptions in the model that disconnect domestic interest rates from domestic saving and investment? b. What is determined by domestic saving and investment in the model?
give the example of country that overinvest in capital and human capital!

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