Georg, a German citizen, just purchased 10 shares of stock in Microsoft, a U.S. company. This purchase is an example of
A) foreign public investment. B) foreign direct investment.
C) contractual globalization. D) foreign portfolio investment.
Question 2
Which of the following is a drawback to having a common currency across countries, as in the European Union?
A) Having a common currency implies that the prices of goods across countries must always be the same, regardless of consumer preferences for goods across countries.
B) A common currency increases barriers to trade across countries, reducing opportunities for economic growth.
C) With a common currency, individual countries are no longer able to run independent monetary policies.
D) None of the above is a drawback to a common currency.
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