7. portfolioinvestment means the: a. purchase of less than 10% of the shares of

ID: 1209804 • Letter: 7

Question

7. portfolioinvestment means the:

a. purchase of less than 10% of the shares of ownership in a company in another country

b.purchase of less than 80% of the shares of ownership in a company in another country

c.purchase of less than 50% of the shares of ownership in a company in another country

d.purchase of less than 20% of the shares of ownership in a company in another country

8. the world bank specializes in making loans to:

a.communist nations

b.african nations

c.industrialized nations

d.developing nations

9. the largest quota subscriber of the international monetary fund is:

a.japan

b.china

c.germany

d.the US

10. the past 40 years in the US, exports as a percentage of GDP and US imports as a percentage of GDP:

a.both rose but US exports as a percent of GDP rose at a faster pace

b.both rose at the same pace

c.both fell at the same pace

d. both rose but US imports as a percent of GDP at a faster pace

11. comparative advantage is defined as:

a. producing one good at a lower opportunity cost than another countries can

b.producing all goods at lower opportunity cost than other countries can

c.the ability to produce more output from given inputs than anyone else can

d.producing more output of all goods than anyone else can

14. according to international trade theory:

a. less developed countries cannot trade successfully with developed countries

b.comparative advantagee is based on absolute advantage

c.every country has a comparative advantage in something

d.trade is based on absolute advantage

7. a. purchase of less than 10% of the shares of ownership in a company in another country.

8. d. developing nations

9. d.the US

10. d. both rose but US imports as a percent of GDP at a faster pace

11. a. producing one good at a lower opportunity cost than another countries can

12. c.every country has a comparative advantage in something

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