Because real capital is supposed to earn a higher return where it is scarce, how do you explain the fact that most international investment flows to the IACs (where capital is relatively abundant) rather than to the DVCs (where capital is very scarce)?

When there are two large open economies in the world, if capital goods become relatively cheaper compared to consumption goods in the foreign country, the foreign country's saving will and the foreign country's investment will fall; rise rise; fall rise; rise fall; fall

Even though the US offers very low interest rates, the U.S. dollar has been appreciating with respect to currencies of developing countries. Why?

Economic integration brought on by globalisation has the potential to allow more widely distributed growth. What makes this possible? What are the big impediments to such integration?

Which scenario best demonstrates foreign direct investment? Salia started a Polish restaurant in her home country, the United States, after she took cooking lessons from a well-known chef in Poland.   Super Blooms, a reputable vegetable plant company in Holland, exports tomato, pepper, and potato garden plants across the globe.     Ups n Downs Inc., a Chinese firm, supplies roller coaster components in the United States.   Domesticity, a U.S.-based office furniture company, has set up its own assembly plant in Japan to cater to the needs of the Asian market.   Lux Linens, a fabric conglomerate in the United States, imports raw silk from China and Italy.

When a country moves from reliance on a single commodity (like oil) for export to a larger variety of export commodities, this represents what development strategy?     Globalization     Diversification     Protectionism     Capacity-building

One of the major objections to the WTO is human rights and student groups say the IMF and the World Bank prop up regimes that condone sweatshops and pursue policies that bail out foreign lenders at the expense of local economies.    True  False