4. How would the following transactions affect Canada's net capital outflow? Also, state whether each involves direct

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4. How would the following transactions affect Canada's net capital outflow? Also, state whether each involves direct investment or portfolio investment.

a. A Canadian cellular phone company establishes an office in the Czech Republic.

b. Harrod's of London sells shares to the Ontario Teachers' Pension Plan.

c. Honda expands its factory in Alliston, Ontario.

d. A Bank of Montreal mutual fund sells its Volkswagen shares to a French investor.

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Principles Of Macroeconomics

ISBN: 9780176591977

7th Canadian Edition

Authors: N. Mankiw, Ronald Kneebone, Kenneth McKenzie

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