QUESTION Indirect effects of FDI on employment in a host country arise when: A. a foreign MNE employs a number of host-country citizens. B. jobs are created because of increased local spending by employees of an MNE. C. an MNE brings in managers from the home country for its operations in the host country. D. […]
Date: September 3rd, 2020
QUESTION Which account in the balance of payments records transactions involving the export and import of goods and services? A. Current B. Foreign C. Internal D. Tariff E. Savings ANSWER A
Date: September 3rd, 2020
QUESTION Which of the following are national accounts that track both payments to and receipts from other countries? A. Equity B. Dematerialized C. Balance of trade D. Asset E. Balance-of-payments ANSWER E
Date: September 3rd, 2020
QUESTION A current account deficit is also known as a(n): A. stock deficit. B. inventory deficit. C. external deficit. D. tariff deficit. E. trade deficit. ANSWER E
Date: September 3rd, 2020
QUESTION Which of the following is most likely to be the effect of FDI in the form of a greenfield investment on the host country? A. It drives down prices and increases the economic welfare of consumers. B. It raises unemployment levels. C. It causes firms to fight for scarce capital investments. D. It leads […]
Date: September 3rd, 2020
QUESTION When a country is importing more goods and services than it is exporting, it is incurring a(n): A. trade surplus. B. current account deficit. C. positive balance of payment. D. economic recession. E. net capital inflow. ANSWER B
Date: September 3rd, 2020
QUESTION According to the free market view, how does FDI increase the efficiency of the world economy through MNEs? A. The MNE is an instrument for dispersing the production of goods and services to the most efficient locations around the globe. B. MNEs extract profits from the host country and take them to their home […]
Date: September 3rd, 2020
QUESTION Which of the following is the only way to support a current account deficit in the long run? A. Borrowing from the IMF B. Selling assets to foreigners C. Divesting stock in domestic corporations D. Purchasing stocks, bonds, and real estate in other countries E. Issuing negotiable instruments like the bills of exchange […]
Date: September 3rd, 2020
QUESTION If one firm in an oligopoly cuts prices, then most likely, its competitors will: A. make profits. B. also respond with similar price cuts. C. correspondingly raise prices. D. capture additional market share. E. not be impacted by the price cuts. ANSWER B
Date: September 3rd, 2020
QUESTION QFresh, a brand for energy drinks, launched a healthy lime-based drink without preservatives. Immediately after this another brand, Fast Fizz, which manufactures energy drinks, also announced the launch of a new refreshing drink without preservatives. Then Ignite, a third brand of energy drinks, reduced the price of its apple-based drink. Which of the following […]
Date: September 3rd, 2020
