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I need to know if these statements are True or False: A foreign direct investment occurs when an investor buys a government bond issue by
I need to know if these statements are True or False:
- A foreign direct investment occurs when an investor buys a government bond issue by a foreign country
- In the Ricardian model some factors of production lose and some win with introduction of free trade
- Benefits of trade within monopolistic competition model include the larger product variety available to consumers
- The monopolistic competition model can explain why a country may both export and import some specific good
- The monopolistic competition model predicts that introduction of free trade causes bankruptcies which tend to increase the average costs of surviving firms
- Production subsidies are strictly forbidden under WTO rules
- Economic theory predicts that common resources such as fish in the ocean may be over-harvested if there is no regulation.
- Nash equilibrium has the property that it is always Pareto-efficient
- A large country may benefit from import tariff under perfect competition because tariff affects the terms of trade
- Euro appreciates against dollar when euro-dollar exchange rate increases.
- Yen-nominated interest rate on Japanese bonds is 4% and dollar-denominated interest rate on U.S. bonds is 2%. according to uncovered interest parity the U.S. dollar is expected to appreciate against the Japanese yen.
- In the Heckscher-Ohlin model rental of capital can differ across industries because land and capital are not mobile across industries.
- According to the Rybczynski theorem an increase in the amount of labor in an economy will increase the output of all industries within the larger product variety available to consumers.
- An import tariff of a small country (home country) benefits the domestic producers of the good under perfect competition.
- The ratio of total trade (as measured by the average of value of imports and exports) to GDP is on average higher for large economies than for small economies
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