You start with a $1,000 portfolio; it loses 50% over the next year, the following year it gains 50% in value. At the end of two years your portfolio is worth:

An increase in the amount of competition with other firms that employ "best practices" would be likely to cause a particular firm's labor productivity to:

A) increase B) stay the same. C) decrease. D) cannot be determined without additional information.

Why are international investors who have invested in developing nations favoring foreign direct investment and portfolio investment over loans?

A) The process of making loans is usually more difficult for investors to do than foreign direct and portfolio investment. B) The interest rate charged on the loans is usually lower than what can be earned in the U.S. C) It is illegal for banks to make loans to foreign firms. D) Investors have an aversion to owning dead capital and want to make sure that the resources they own do not become dead capital.