Author Question: If you invest in a foreign company by buying 8 percent of its shares of stock, you have engaged in ... (Read 225 times)

asan beg · **on:** Jun 30, 2018

If you invest in a foreign company by buying 8 percent of its shares of stock, you have engaged in

A) moral hazard. B) foreign direct investment.
C) portfolio investment. D) adverse selection.

Question 2

Refer to the table above. Which of the following is true?

A) Country X has a comparative advantage in the production of rice.
B) Country X has a comparative advantage in the production of wheat.
C) Country Y has an absolute advantage only in the production of wheat.
D) Country Y has an absolute advantage only in the production of rice.