How would the following transactions affect UK net capital outflow? Also, state whether each involves direct investment

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

a. A British mobile telephone company establishes an office in the Czech Republic.

b. A US company’s pension fund buys shares in BP.

c. Toyota expands its factory in Derby, England.

d. A London-based investment trust sells its Volkswagen shares to a French investor.

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Economics

ISBN: 124344

2nd Edition

Authors: N. Gregory Mankiw

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