1. Which of the following is an example of foreign portfolio investment? A business owner
1. Which of the following is an example of foreign portfolio investment?
A business owner in the UK acquires a business in the United States.
A UK investor buys shares issued by a US company. <------ My answer.
A UK investor buys shares issued by a UK company.
A UK business owner acquires a UK company.
2. Which of the following distinguishes foreign direct investment from other forms of investment?
A. Foreign direct investment involves significant control over a foreign company. <------ My answer.
B. Foreign direct investment involves the exchange of foreign assets for domestic assets.
C. Foreign direct investment involves the transfer of domestic capital abroad.
D. Foreign direct investment involves domestic ownership of foreign assets.
3. How does foreign investment contribute to economic development?
A. Foreign investment provides education for governments and populations.
B. Foreign investment provides monetary assistance to countries suffering from humanitarian crises.
C. Foreign investment provides foreign countries with capital that can be used for production.
D. Foreign investment provides development loans and grants that help developing countries. <------ My answer.
4. In which of the following ways does the World Bank support researchers in addressing development issues?
A. The World Bank provides development grants and loans to researchers.
B. The World Bank provides investment capital to researchers.
C. The World Bank grants researchers free access to its publications. <------ My answer.
D. The World Bank offers consulting services to researchers.
5. Which of the following statements illustrates how foreign aid differs from foreign investment?
A. Foreign aid involves the transfer of funds from one country to another.
B. Foreign aid involves the exchange of domestic capital for foreign land, capital and labor.
C. Foreign assistance includes the transfer of funds to address economic, military, and humanitarian situations. <------ My answer.
D. Foreign aid provides the capital that developing countries need to increase economic output.
Thank you, yes, really. I hope you are right.
May 5, 2022