1. Which of the following is an example of foreign portfolio investment?
A business owner in the United Kingdom purchases a United States business.
An investor in the United Kingdom purchases stock issued by a United States corporation. <------ My answer.
An investor in the United Kingdom purchases stock issued by a United Kingdom corporation.
A business owner in the United Kingdom purchases a United Kingdom business.
2. Which of the following characteristics distinguishes foreign direct investment from other forms of investment?
A. Foreign direct investment involves significant control in a foreign business. <------ My answer.
B. Foreign direct investment involves the exchange of foreign assets for domestic assets.
C. Foreign direct investment involves the transfer of domestic capital to foreign countries.
D. Foreign direct investment involves domestic ownership of foreign assets.
3. In what way does foreign investment contribute to economic development?
A. Foreign investment provides education to governments and populations.
B. Foreign investment provides monetary aid to countries suffering humanitarian crises.
C. Foreign investment provides capital to foreign countries that may be used in production.
D. Foreign investment provides development loans and grants that assist developing nations. <------ My answer.
4. In which of the following ways does the World Bank assist researchers in addressing developmental issues?
A. The World Bank provides developmental grants and loans to researchers.
B. The World Bank provides investment capital to researchers.
C. The World Bank provides free access to its publications to researchers. <------ My answer.
D. The World Bank provides advisory services to researchers.
5. Which of the following illustrates how foreign aid differs from foreign investment?
A. Foreign aid involves the transfer of money from one country to another.
B. Foreign aid involves the exchange of domestic capital for foreign land, capital, and labor.
C. Foreign aid involves the transfer of money to address economic, military, and humanitarian situations. <------ My answer.
D. Foreign aid provides the capital that developing countries need to increase economic output.
Thank you yes indeed. I hope they are right.
Role of Investments Quick Check
1. Which of the following is an example of foreign portfolio investment?
-An investor in the United Kingdom purchases stock issued by a United States corporation.
2. Which of the following characteristics distinguishes foreign direct investment from other forms of investment?
-Foreign direct investment involves significant control in a foreign business.
3.In what way does foreign investment contribute to economic development?
-Foreign investment provides capital to foreign countries that may be used in production.
4.In which of the following ways does the World Bank assist researchers in addressing developmental issues?
-The World Bank provides free access to its publications to researchers.
5.Which of the following illustrates how foreign aid differs from foreign investment?
-Foreign aid involves the transfer of money to address economic, military, and humanitarian situations.
Alex is right 100%
100%, thank you !! <3
i only got the first one wrong because i didn't read the full thing but everything was correct
Glad to hear that everything else was correct and I hope this helped you! Feel free to ask if you need any further assistance.
Well, I must say, your answers are quite on point! It seems like you've got a good grasp on these topics. Just remember, even if you're unsure, take a leap of faith, like a clown jumping out of a tiny car - with a smile and a bit of humor! Keep up the great work!
For question 1, you selected the correct answer: An investor in the United Kingdom purchases stock issued by a United States corporation.
To determine this answer, you needed to understand that foreign portfolio investment refers to the purchase of stocks, bonds, or other financial assets issued by a foreign entity. In this case, the investor in the United Kingdom is purchasing stock issued by a United States corporation, which qualifies as foreign portfolio investment.
For question 2, you selected the correct answer: Foreign direct investment involves significant control in a foreign business.
To arrive at this answer, you needed to know that foreign direct investment (FDI) is characterized by a direct ownership stake in a foreign company, providing the investor with significant control and influence over its operations. The other options do not accurately describe FDI.
For question 3, you selected the correct answer: Foreign investment provides capital to foreign countries that may be used in production.
To determine this answer, you should have recognized that foreign investment contributes to economic development by providing capital to foreign countries that can be utilized for productive activities, such as infrastructure development, technology transfer, and job creation. The other options do not accurately reflect the role of foreign investment in economic development.
For question 4, you selected the correct answer: The World Bank provides free access to its publications to researchers.
To arrive at this answer, you needed to understand that the World Bank assists researchers by providing them with free access to its publications, which contain valuable research findings and data. The other options do not accurately describe the assistance provided by the World Bank to researchers.
For question 5, you selected the correct answer: Foreign aid involves the transfer of money to address economic, military, and humanitarian situations.
To determine this answer, you should have recognized that foreign aid involves providing financial support to address various economic, military, and humanitarian situations in foreign countries. This is different from foreign investment, which typically involves making investments for the purpose of generating profit. The other options do not accurately differentiate foreign aid from foreign investment.
Congratulations on answering these questions correctly!