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.

Q: What is Foreign Direct Investment (FDI) all about?

A: An investment is defined as asset which is acquired with the goal of earning income. This can be in…

Q: A6 “Commodity-rich Australia is one of the very few countries to receive an economic growth upgrade…

A: Natural Rate of Unemployment is the rate of unemployment when the GDP is at its potential level and…

Q: Should we focus our efforts on foreign investment or domestic investment ?

A: Introduction: Foriegn investment: A foreign investor's investment in local firms and assets of…

Q: Knowing the benefits and disadvantages of Foreign Direct Investment (FDI), which of the 4 types is…

A: The foreign direct investment is considered as the investment that the companies and the firms…

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A: If the local or foreign rate of interest changes that will impact the local and foreign investment.

Q: Discuss the advantages of inward foreign direct investment (FDI) for a source country.

A: A key element of international economic activity is foreign direct investment (FDI), which is the…

Q: If a country's savings remain constant and the trade balance (net exports) increases, then: A) GDP…

A: The GDP of a country is given by - Y = C + I + G + NX  where C = consumption expenditure I =…

Q: In a country, private savings equals 600, the government budget surplus equals 200, and the trade…

A: We are given private savings as 600, government budget surplus as 200 and trade surplus as 100.…

Q: In the foreign exchange​ market, when the U.S. interest rate​ rises, the supply of dollars​ ________…

A: Answer: Option A  (decreases; rises) Explanation: When the U.S. interest rate rises investors will…

Q: Foreign Direct Investment results in the following benefits: Select one: a. Higher productivity b.…

A: A foreign direct investment (FDI) is an investment made by a firm or individual in one country into…

Q: Draw a diagram for Saving and Investment in a small open economy. Assume the world real interest…

A: Savings and investment is one kind of economic process in which savings is one kind of money which…

Q: 8. An increase in national saving requires either a rise in investment or an increase in the capital…

A: From the national income identity, an open economy can be expressed as follows,  Y = C + I + G + NX…

Q: Explain briefly what international investment law does. Why is it important? Is it a good or bad…

A: Investing means putting money into something with the prospect of a future benefit or return. To put…

Q: Which of the following is true about BRIC countries: a. There is low prospects of growth b.…

A: The question is asking us to identify the correct statement about the BRIC countries. BRIC is an…

Q: Explain briefly whether each of the following would be more likely to lead to a higher level of…

A: The term trade refers to the situation under which the products and goods are traded in terms of…

Q: In the open-economy macroeconomic model, if investment demand increases, then the real interest rate…

A: In an open economy macroeconomic model, trade between countries takes place. The real interest rate…

Q: In your opinion, how can we attract new foreign investors to our country in order to develop our…

A: Foreign investment refers to a situation when the individual from a foreign country invest in…

Q: INTERNATIONAL TRADE   Which of the following are direct foreign investments? Explain your answer.…

A: There are two types of international investments :- Direct foreign investment Portfolio foreign…

Q: If the world real interest rate falls, then a country that is an international lender Select one: O…

A: If the world real interest rate falls, then a country that is an international lender Select one…

Q: Which of the following are direct foreign investments, and which are not? Event a. A French company…

A: The issue is whether or not particular events are considered direct foreign investment or not.

Q: Discuss recent trends of foreign investment in the United States specifically in the stock market…

A: The US is the world's largest recipient of FDI. According to the latest The Economist’s Business…

Q: oreign countries start to subsidize investment by instituting an investment tax credit. a) What…

A: A tax credit is an incentive being offered which in turn allows the taxpayers for reducing the tax…

Q: Show the effects of an increase in the world interest rate on the market for loanable funds and the…

A: The market of loanable funds is base in the concept that the market interest rate is determined by…

Q: Suppose the goods-market in an open economy can be represented by the following equations: Y = a +…

A: In the aggregate expenditure model, equilibrium occurs where aggregate expenditure is equal to…

Q: Suppose that the real exchange rate between Canada and Tanzania is defined in terms of baskets of…

A: This can be described as a concept that shows an increase in the real exchange rate means that a…

Q: Government has resorted to external borrowing to fund government projects such as infrastructure and…

A: Foreign borrowing refers to the borrowings from foreign lenders to fund the various expenditures of…

Q: Because real capital is supposed to earn a higher return where it is scarce, how do you explain the…

A: IAC or Industrially advanced countries are those countries that have a high level of per capita…

Q: What are the assumptions in the small open economy.vs closed or large open? What would be an example…

A: The concept of TOT can be explained as the ratio at which a country can exchange its exports for…

Q: 3. How does increased foreign demand for US government bonds affect the foreign exchange

A: Foreign exchange rate is the rate at which one currency is exchanged for the other however there may…

Q: lease answer my question   Is Philippines a member of OECD ?

A: OECD refers to the Organization for Economic Co-operation and Development

Q: What is the saving and investment equation? If national saving declines what will happen to domestic…

A: Investment refers to putting money in a production technology that aids in creation of output. It…

Q: Consider a small open economy that takes the world real interest rate as given. Suppose that…

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Q: Which of the following is an example of foreign direct investment? Select one: Ⓒa. A Brazilian firm…

A: Foreign direct investment refers to investment which originates from source country to destination…

Q: Suppose there is a slowdown in economic activity worldwide and many foreign governments decide to…

A: An increase in government spending has a significant impact on the economy.

Q: e comment! Since more capital allows more output to be produced, it is always better for a country…

A: we know As Capital, in the eyes of an economist, usually refers to liquid assets of it. To put it in…

Q: tends to discourage firms from making physical capital investments. O Government borrowing O Large…

A: Physical capital includes tangible and man-made objects that a firm purchases or invests in for the…

Q: Differentiate between a closed economy and an open economy

A: Economics is divided into two categories that are microeconomics and macroeconomics. Microeconomics…

Q: List and explain two arguments for and two against Foreign Direct Investment?

A: Foreign Direct Investment (FDI): Refers to the investment made by a foreign entity in a business or…