Question :
71.SupposethatanAmericanopensandoperatesacandyfactoryinFinland.Thisisanexampleof
a.foreigndirectinvestment.AmericansavingisusedtofinanceFinishinvestment.
b.foreigndirectinvestment.American : 1261755
71.SupposethatanAmericanopensandoperatesacandyfactoryinFinland.Thisisanexampleof
a.foreigndirectinvestment.AmericansavingisusedtofinanceFinishinvestment.
b.foreigndirectinvestment.AmericansavingisusedtofinanceAmericaninvestment.
c.foreignportfolioinvestment.AmericansavingisusedtofinanceFinishinvestment.
d.foreignportfolioinvestment.AmericansavingisusedtofinanceAmericaninvestment.
72.SupposethatanAmericancompanyopensandoperatesarestaurantinIreland.Thisisanexampleof
a.foreigndirectinvestment.AmericansavingisusedtofinanceIrishinvestment.
b.foreigndirectinvestment.AmericansavingisusedtofinanceAmericaninvestment.
c.foreignportfolioinvestment.AmericansavingisusedtofinanceIrishinvestment.
d.foreignportfolioinvestment.AmericansavingisusedtofinanceAmericaninvestment.
73.Foreignsavingisusedfordomesticinvestmentwhenforeignersengagein
a.foreigndirectinvestment.
b.foreignportfolioinvestment.
c.eitherforeigndirectinvestmentorforeignportfolioinvestment.
d.Noneoftheaboveiscorrect.
74.IfWarmWear,aU.S.manufacturerofwinterclothing,opensanewfactoryinAustria,then
a.AustrianGNPincreasesbymorethanAustrianGDP,becauseGDPincludesincomeearnedbyforeignersworkinginAustria.
b.AustrianGNPincreasesbymorethanAustrianGDP,becauseGDPexcludesincomeearnedbyforeignersworkinginAustria.
c.AustrianGNPincreasesbylessthanAustrianGDP,becauseGDPincludesincomeearnedbyforeignersworkinginAustria.
d.AustrianGNPincreasesbylessthanAustrianGDP,becauseGDPexcludesincomeearnedbyforeignersworkinginAustria.
75.SupposeaU.S.automakerbuildsandoperatesanewfactoryinItaly.Futureproductionfromsuchaninvestmentwill
a.increaseItalianGDPmorethanitincreasesItalianGNP.
b.increaseItalianGNPmorethanitincreasesItalianGDP.
c.havenoaffectonItalianGNP,butwillincreaseItalianGDP.
d.havenoaffectoneitherItalianGDPorGNP.
76.SupposeJapanese-basedToshibaCorporationbuildsandoperatesanewcomputerfactoryintheUnitedStates.
a.increaseU.S.GNPmorethanitincreasesU.S.GDP.
b.increaseU.S.GDPmorethanitincreasesU.S.GNP.
c.havenoaffectonU.S.GNP,butwillincreaseU.S.GDP.
d.havenoaffectonU.S.GNPorGDP.
77.TheopeningofanewAmerican-ownedfactoryinAlgeriawouldtendtoincreaseAlgeria’sGDPmorethanitincreasesAlgeria’sGNPbecause
a.someoftheincomefromthefactoryaccruestopeoplewhodonotliveinAlgeria.
b.grossdomesticproductisincomeearnedwithinacountrybybothresidentsandnonresidents,whereasgrossnationalproductistheincomeearnedbyresidentsofacountrywhileproducingbothathomeandabroad.
c.alloftheincomefromthefactoryisincludedinAlgeria’sGDP.
d.Alloftheabovearecorrect.
78.IfaJapanesecompanyopensanewfactoryinSouthKorea,itmakes
a.foreigndirectinvestment.ThefactorywillmakeabiggerimpactonSouthKorea’sGDPthanonitsGNP.
b.foreigndirectinvestment.ThefactorywillmakeabiggerimpactonSouthKorea’sGNPthanonitsGDP.
c.foreignportfolioinvestment.ThefactorywillmakeabiggerimpactonSouthKorea’sGDPthanonitsGNP.
d.foreignportfolioinvestment.ThefactorywillmakeabiggerimpactonSouthKorea’sGNPthanonitsGDP.
79.WhenChileexperiencesinvestmentfromabroad,itexperiences,asaresult,
a.anincreaseinproductivity.
b.adecreaseinGrossNationalProduct(GNP).
c.lowerwagesforChileanworkers.
d.Noneoftheaboveiscorrect.
80.IfcompaniesfromforeigncountriesbuildandoperatefactoriesinChina,thenChina’sproductivity
a.andthewagesofChineseworkersincrease.
b.increasesbutthewagesofChineseworkersdecrease.
c.decreasesbutthewagesofChineseworkersincrease.
d.andthewagesofChineseworkersdecrease.