Question 1

A) Which of the following is an example of foreign portfolio investment?(1 point)

A business owner in the United Kingdom purchases a United States business.

A business owner in the United Kingdom purchases a United States business.

A business owner in the United Kingdom purchases a United Kingdom business.

A business owner in the United Kingdom purchases a United Kingdom business.

An investor in the United Kingdom purchases stock issued by a United Kingdom corporation.

An investor in the United Kingdom purchases stock issued by a United Kingdom corporation.

An investor in the United Kingdom purchases stock issued by a United States corporation.

An investor in the United Kingdom purchases stock issued by a United States corporation.

Question 2

A) Which of the following characteristics distinguishes foreign direct investment from other forms of investment?(1 point)

Foreign direct investment involves significant control in a foreign business.

Foreign direct investment involves significant control in a foreign business.

Foreign direct investment involves the exchange of foreign assets for domestic assets.

Foreign direct investment involves the exchange of foreign assets for domestic assets.

Foreign direct investment involves domestic ownership of foreign assets.

Foreign direct investment involves domestic ownership of foreign assets.

Foreign direct investment involves the transfer of domestic capital to foreign countries.

Foreign direct investment involves the transfer of domestic capital to foreign countries.

Question 3

A) In what way does foreign investment contribute to economic development?(1 point)

Foreign investment provides development loans and grants that assist developing nations.

Foreign investment provides development loans and grants that assist developing nations.

Foreign investment provides education to governments and populations.

Foreign investment provides education to governments and populations.

Foreign investment provides monetary aid to countries suffering humanitarian crises.

Foreign investment provides monetary aid to countries suffering humanitarian crises.

Foreign investment provides capital to foreign countries that may be used in production.

Foreign investment provides capital to foreign countries that may be used in production.

Question 4

A) In which of the following ways does the World Bank assist researchers in addressing developmental issues?(1 point)

The World Bank provides investment capital to researchers.

The World Bank provides investment capital to researchers.

The World Bank provides free access to its publications to researchers.

The World Bank provides free access to its publications to researchers.

The World Bank provides advisory services to researchers.

The World Bank provides advisory services to researchers.

The World Bank provides developmental grants and loans to researchers.

The World Bank provides developmental grants and loans to researchers.

Question 5

A) Which of the following illustrates how foreign aid differs from foreign investment?(1 point)

Foreign aid involves the transfer of money to address economic, military, and humanitarian situations.

Foreign aid involves the transfer of money to address economic, military, and humanitarian situations.

Foreign aid involves the exchange of domestic capital for foreign land, capital, and labor.

Foreign aid involves the exchange of domestic capital for foreign land, capital, and labor.

Foreign aid provides the capital that developing countries need to increase economic output.

Foreign aid provides the capital that developing countries need to increase economic output.

Foreign aid involves the transfer of money from one country to another.

Foreign aid involves the transfer of money from one country to another.