Author Question: What are sovereign wealth funds? Why are they controversial? What will be an ideal ... (Read 84 times)

Zulu123

  • Hero Member
  • *****
  • Posts: 525
What are sovereign wealth funds? Why are they controversial?
 
  What will be an ideal response?

Question 2

Sharing risk in a strategic alliance is most important for a firm that is entering a(n) ________ market.
 
  A) competitive
  B) established
  C) high-tech
  D) new


chjcharjto14

  • Sr. Member
  • ****
  • Posts: 342
Answer to Question 1

Sovereign wealth funds are a new and controversial source of capital. They are government controlled pools of capital that invest in a variety of industries, mostly in a passive way. Most of the SWFs are owned by oil-rich governments. The Abu Dhabi Investment Authority is currently the largest, with 627 billion in assets, followed by the Government Pension Fund of Norway with 557 billion. Other SWFs are owned by governments of countries enjoying large balance of payments surpluses, such as China and Singapore. The funds are controversial because they should be solely for commercial purposes but could be a backdoor means of promoting the political goals of the governmental owner of the SWF.

Answer to Question 2

D



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

chjcharjto14

  • Sr. Member
  • ****
  • Posts: 342

 

Did you know?

More than 30% of American adults, and about 12% of children utilize health care approaches that were developed outside of conventional medicine.

Did you know?

Every 10 seconds, a person in the United States goes to the emergency room complaining of head pain. About 1.2 million visits are for acute migraine attacks.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

Approximately 25% of all reported medication errors result from some kind of name confusion.

Did you know?

Approximately one in three babies in the United States is now delivered by cesarean section. The number of cesarean sections in the United States has risen 46% since 1996.

For a complete list of videos, visit our video library