Foreign direct investment is:
A. investment that occurs when a firm runs part of its operation abroad or invests in another company abroad.
B. investment that occurs when a firm runs its operation domestically, and sells its product abroad.
C. when foreign companies buy physical capital from the United States.
D. when foreign companies buy and operate physical capital within the United States.
A. investment that occurs when a firm runs part of its operation abroad or invests in another company abroad.
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According to the No Marginal Improvement Principle, if X* is the best choice then at X* it must always be true that:
A. either MB = MC or the activity X is not finely divisible. B. either MB ? MC or the activity X is not finely divisible. C. either MB < MC or MB > MC. D. MB = MC.
The benefits of specialization can be used to explain why:
A. machines are more productive than human workers. B. individuals and nations benefit from trade. C. big companies take advantage of smaller ones. D. workers prefer to work on a variety of tasks during the day.