________ refer(s) to purchasing shares in a foreign enterprise largely owned and controlled by the investor.

A. Portfolio investment
B. Official capital flows
C. Short-term lending
D. Direct investment

Answer: D

Economics

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Which of the following most clearly illustrates the concept of derived demand?

a. An increase in the price of steak causes the demand for poultry to increase. b. An increase in the demand for new houses leads to an increase in the demand for construction workers. c. An increase in consumer income leads to an increase in the demand for services provided by the government. d. An increase in the demand for new cars causes the demand for used automobiles to rise.

Economics

The size of the multiplier is equal to the:

A. slope of the consumption schedule. B. reciprocal of the slope of the consumption schedule. C. slope of the saving schedule. D. reciprocal of the slope of the saving schedule.

Economics