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

Question

Responses

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.

Answer 1

The correct response that exemplifies foreign portfolio investment is:

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

This is because foreign portfolio investment involves investing in financial assets (such as stocks or bonds) in a foreign country, as opposed to direct investment in businesses or purchasing assets in the investor's home country.

Answer 2

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

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

Foreign direct investment involves domestic ownership of foreign assets.
Foreign direct investment involves domestic ownership of foreign assets.

Foreign direct investment involves significant control in a foreign business.

Answer 3

The characteristic that distinguishes foreign direct investment (FDI) from other forms of investment is:

Foreign direct investment involves significant control in a foreign business.

FDI typically implies that the investor has substantial influence or control over the foreign business operations, often defined as owning 10% or more of the business. This sets it apart from portfolio investments, which do not involve such control.

Answer 4

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

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.

Foreign investment provides monetary aid to countries suffering humanitarian crises.
Foreign investment provides monetary aid to countries suffering humanitarian crises.

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.

Answer 5

The response that best describes how foreign investment contributes to economic development is:

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

This capital can be utilized to build infrastructure, create jobs, and enhance productivity, ultimately driving economic growth in the host country.

Answer 6

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

The World Bank provides developmental grants and loans to researchers.
The World Bank provides developmental grants and loans to researchers.

The World Bank provides advisory services to researchers.
The World Bank provides advisory services to researchers.

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.

Answer 7

The best response that accurately describes how the World Bank assists researchers in addressing developmental issues is:

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

The World Bank publishes a wealth of research, data, and reports that are accessible to researchers, which can help them in their studies and analyses of developmental issues. While the World Bank may offer grants and loans for specific projects, these are generally more directed at projects or countries rather than directly to researchers in a general context.