ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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- 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.arrow_forwardThe forward rate of exchange is 2 , the spot rate of exchange is 1.75. The US has a bond of 9% interest and Canada has a bond for 5% interest. What is the amount you can collect in US dollars for the Canada bond on an investment of $10,000? Group of answer choices $10,937.50 and the Canadian investment is worse than the US investment $10,900 and the Canadian investment is better than the US investment $10,900 and the Canadian investment is worse than the US investment $10,937.50 and the Canadian investment is better than the US investmentarrow_forwardThe capital account on the United States' balance of payments includes ALL BUT WHICH of the following transactions? a. Changes in ownership of foreign stocks. b. The sale of U.S. automobiles to German consumers. c. Foreign investors construct a factory on U.S. soil. d. The purchase of U.S. bones by a foreign government. e. A U.S. firm buys property in a foreign country.arrow_forward
- GE Appliance Park in Louisville has been sold to Haier, a Chinese company. What form of Foreign Direct Investment is it for Haier?arrow_forwardIdentify the impact of a Foreign Direct Investment inflow on the following factors. Please explain each in one or two sentences: Employment: (Improve/Ambiguous/Deteriorate) Explanation: Competition: (Increase/Ambiguous/Decrease) Explanation: Trade balance: (Improve/Ambiguous/Deteriorate) Explanation:arrow_forwardWe may use the diagram below (Figure 2, panel (a)) to assess whether trade deficits are bad. Use the diagram to explain whether (or when) trade deficits are bad.arrow_forward
- In the United States, several states and localities actively seek investment from enterprises from other regions of the country. Why areUS investors concerned about foreign investment?arrow_forwardWhich of the following is an example of foreign direct investment from the United States to Mexico? O Acquisition of a convenience store in Mexico City by a lawyer in Chicago on behalf of an American client. Sale of land in the U.S. by an American to a Mexican. O Deposit by an American professor of US dollars into a bank in Mexico. O Sale of land in Mexico by an American to a Mexican.arrow_forward
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