QUESTION 15 The existence of inefficiencies in capital markets due to lack of disclosure and other reasons that may prevent portfolio investment from equalizing rates of return for given levels of risk internationally supports the hypothesis of foreign direct investment: O a. Market Disequilibrium Ob. Market Structure O . Market equilibrium O d. Market Failure O e. Government Imposed Distortion QUESTION 16 A DISC (in international taxation) is a: O a. Company located in a foreign country that conducts domestic and international sales. Ob. Company incorporated in a possession territory of the United States. OC. Dummy Company to which a U.S. export company sources its profits. O d. Dummy International Sales Commission (for Tax Havens) O e. Sales Company working with international dummies. QUESTION 17 Answer questions 17 and 18 based on the following information: As you know, Flabovia has adopted a Value Added Tax (VAT); the tax rate across the board is 15%. A farmer grows vegetables and sells them to the wholesaler for $1/lb. The wholesaler sells them to the local market for $3/lb. The market then sells them to its customers for $10/lb. Question 17. The total tax received by the government is S ,while the total tax paid by the customer is $ |(Write-in your answer).

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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QUESTION 15
The existence of inefficiencies in capital markets due to lack of disclosure and other reasons that may prevent portfolio
investment from equalizing rates of return for given levels of risk internationally supports the
hypothesis of foreign direct investment:
O a. Market Disequilibrium
O b. Market Structure
O. Market equilibrium
O d. Market Failure
O e. Government Imposed Distortion
QUESTION 16
A DISC (in international taxation) is a:
O a. Company located in a foreign country that conducts domestic and international sales.
Ob. Company incorporated in a possession territory of the United States.
O c. Dummy Company to which a U.S. export company sources its profits.
O d. Dummy International Sales Commission (for Tax Havens)
O e. Sales Company working with international dummies.
QUESTION 17
Answer questions 17 and 18 based on the following information:
As you know, Flabovia has adopted a Value Added Tax (VAT); the tax rate across the board is 15%. A farmer grows
vegetables and sells them to the wholesaler for $1/lb. The wholesaler sells them to the local market for $3/lb. The
market then sells them to its customers for $10/lb.
Question 17. The total tax received by the government is S
while the total tax paid by the
customer is $
|(Write-in your answer).
Transcribed Image Text:QUESTION 15 The existence of inefficiencies in capital markets due to lack of disclosure and other reasons that may prevent portfolio investment from equalizing rates of return for given levels of risk internationally supports the hypothesis of foreign direct investment: O a. Market Disequilibrium O b. Market Structure O. Market equilibrium O d. Market Failure O e. Government Imposed Distortion QUESTION 16 A DISC (in international taxation) is a: O a. Company located in a foreign country that conducts domestic and international sales. Ob. Company incorporated in a possession territory of the United States. O c. Dummy Company to which a U.S. export company sources its profits. O d. Dummy International Sales Commission (for Tax Havens) O e. Sales Company working with international dummies. QUESTION 17 Answer questions 17 and 18 based on the following information: As you know, Flabovia has adopted a Value Added Tax (VAT); the tax rate across the board is 15%. A farmer grows vegetables and sells them to the wholesaler for $1/lb. The wholesaler sells them to the local market for $3/lb. The market then sells them to its customers for $10/lb. Question 17. The total tax received by the government is S while the total tax paid by the customer is $ |(Write-in your answer).
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