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Author Question: Which of the following is an example of direct foreign investment? A) A U.S. citizen buys stock ... (Read 27 times)

bobthebuilder

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on: Jun 30, 2018
Which of the following is an example of direct foreign investment?
 
  A) A U.S. citizen buys stock in a Mexican company.
  B) The Bank of China buys U.S. Treasury bonds.
  C) Apple builds a plant in Ireland.
  D) A company in England buys inputs to production from a German company.

Question 2

What are the costs of capital mobility?
 
  What will be an ideal response?


Cnarkel

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Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

The cost is potential macroeconomic crisis from volatile capital flows.


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