Direct investment should only be used whenthere is a low chance of success and the market has weak potentialthe market is stable and flatthere is a low chance of success and the market has strong potentialthere is a high chance of success and the market has strong potentialthere is a high chance of success and the market has weak potential Countries useboycotttariffslicensesquotassubsidiesto stop the import of goods from a specific country.

Direct investment is a long-term investment that involves taking control of a business in another…

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Direct investment should only be used when

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter17: Financial Markets

Section: Chapter Questions

Problem 5SCQ: Investors sometimes fear that a high-risk investment is especially likely to have low returns. Is...

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Question

Direct investment should only be used when
there is a low chance of success and the market has weak potential
the market is stable and flat
there is a low chance of success and the market has strong potential
there is a high chance of success and the market has strong potential
there is a high chance of success and the market has weak potential

Countries use
boycott
tariffs
licenses
quotas
subsidies
to stop the import of goods from a specific country.

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