Foreign Direct Investment (FDI) Types

What can exchange rate fluctuations lead to?

Changes in import prices and domestic inflation (correct)
Reduced sovereign debt
Increased economic growth
Improved environmental impact

What was the purpose of the Bretton Woods System?

To tie currencies to the value of gold (correct)
To increase sovereign debt
To promote environmental sustainability
To impose macroeconomic restrictions

What is a con of the International Monetary Fund (IMF)?

Moral hazard and one size fits all approach (correct)
Reducing sovereign debt
Promoting environmental sustainability
Lack of macroeconomic restrictions

What is sovereign debt?

The amount of money a country's government has borrowed (C) Signup and view all the answers

What happened to Argentina's economy during the 1990s?

It experienced economic growth due to borrowing from international capital markets (C) Signup and view all the answers

What is comparative advantage?

An advantage enjoyed by a country where production of a particular product involves greater relative advantage (C) Signup and view all the answers

What type of Foreign Direct Investment involves buying an existing company in a foreign location?

Acquisition (D) Signup and view all the answers

What drives a country's economy according to the text?

Business investment and consumer spending (A) Signup and view all the answers

What is the term for a period of two quarters of negative economic growth?

Recession (B) Signup and view all the answers

What can cause inflation according to the text?

Scarcity and supply chain breakdown (D) Signup and view all the answers

What is the purpose of fiscal policy according to the text?

To balance public spending with income from taxation (C) Signup and view all the answers

What is the term for a decrease in GDP of ten percent within a year?

Depression (B) Signup and view all the answers

What are the four major factors that contribute to international competitiveness according to Porters Theory of Competitive Advantage?

Demand conditions, factor conditions, firms' strategy, and supporting industries (B) Signup and view all the answers

Why did the United Kingdom and the United States have concerns about Huawei?

Huawei was using its technology to spy on other countries (D) Signup and view all the answers

What was Huawei's area of expertise in the global market?

Telecom infrastructure, networking, and smartphones (A) Signup and view all the answers

What was the reason behind government intervention in the economy, according to the text?

To protect jobs and industries (A) Signup and view all the answers

What is the name of the technology that Huawei is a leader in developing?

5G (A) Signup and view all the answers

What is environmental degradation an example of?

Environmental change caused by human activity (B) Signup and view all the answers

Why do countries and businesses often prioritize profit over environmental concerns?

To pursue economic growth and global expansion (A) Signup and view all the answers

What is resource scarcity linked to?

Environmental degradation (B) Signup and view all the answers

What is an example of environmental degradation caused by human activity?

Deforestation (B) Signup and view all the answers

Why do economies often experience environmental degradation as they boom?

Because of prioritizing profit over environmental concerns (B) Signup and view all the answers

What is a consequence of resource scarcity?

Increased pressure to extract or exploit resources unsustainably (B) Signup and view all the answers

What can happen to the environment when humans overexploit natural resources?

It degrades through pollution and habitat destruction (D) Signup and view all the answers

What is the main goal of the 'Handprint' approach?

To develop innovative solutions for environmental degradation (B) Signup and view all the answers

Which company is mentioned as using solar panels to power their facilities?

Walmart (A) Signup and view all the answers

What is the trade-off between environmental and economic priorities?

Balancing environmental and economic priorities requires making decisions where one may be sacrificed for the other (D) Signup and view all the answers

What is the main issue affecting the Taj Mahal?

Negligent management and pollution (D) Signup and view all the answers

What is the dilemma presented in the Taj Mahal case?

Reducing emissions would slow down the economy (C) Signup and view all the answers