Which of the following is NOT a market imperfection or genuine comparative advantage that attracts FDI to particular locations?
A) defensive investments B) low cost and productive labor force
C) an expansive monetary policy D) unique sources of raw materials
Answer: C
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One Friday a few years ago, the Big Mac Index suggested that the yen was overvalued relative to the dollar by 70%
When currency markets opened on the following Monday, anyone using the Big Mac Index would conclude that the yen was only 20% overvalued relative to the dollar. What is the most likely explanation for this? A) Japan's Central Bank acted to prop up the yen. B) Inflation in Japan suddenly spiked upward. C) McDonald's headquarters stopped hedging. D) McDonald's Japan reduced the yen price of a Big Mac. E) McDonald's Japan increased the yen price of a Big Mac.
Attorney-client, doctor-patient, and husband-wife are examples of:
A) privileged communications. B) moral communications. C) expert communications. D) limited communications.