The purchase or building by a corporation of a facility in a foreign country is called
A) foreign direct investment. B) foreign capital depreciation.
C) foreign portfolio investment. D) globally-directed investment.
A
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If buyers cannot assess the quality of used cars but there are warranties for cars,
A) too few lemons are sold. B) too many good used cars are sold. C) good used cars are sold at a higher price than lemons. D) there is an adverse selection problem.
Suppose Cournot duopolist firms operate with each having a cost of 30qi (i = 1,2 ) so that each firm's marginal cost is 30. The inverse market demand curve is P = 120 - Q where Q = q1 + q2
Suppose there were no barriers to entry and firms continued to enter so long as there were positive economic profits. At the Nash-Cournot equilibrium, the total output, Q, is A) 30. B) 45. C) 60. D) 90.