What are the sources of private investments in foreign nations?
What will be an ideal response?
The three sources of private investment funds are bank loans, portfolio investments and foreign direct investment. Portfolio investment is a purchase of less than 10 percent of the shares in a corporation in another country. Foreign direct investment is a purchase of more than 10 percent of ownership share in a foreign corporation.
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External economies of scale will ________ average cost when output is ________ by ________
A) reduce; increased; the industry B) reduce; increased; a firm C) increase; increased; a firm D) increase; increased; the industry E) reduce; reduce; the industry
When people are holding money in excess of their demand for real money balances ________
A) the nominal interest rate will fall B) they increase their purchases of goods and services C) the central bank buys bonds to correct the imbalance D) all of the above E) none of the above