1. Which of the following are main drivers of rising foreign direct investment over the foreseeable future?
a. Diversity and telecommunications
b. Telecommunications and trans portation
c. Globalization and mergers and acquisitions (M&A)
d. Diversity and globalization
2. According to the efficient market view, the best predictor of exchange rates is ________.
a.forward exchange rates
b.fundamental analysis
c.technical analysis
d.statistical modeling
3. _________________________ is an investment that does not involve obtaining a degree of control in a company.
4. Trade diversion can result in increased trade with a _________________________ efficient producer within the trading bloc and reduced trade with a _________________________ efficient nonmember producer.
5. A company selling its product in a country with a _________________________ currency while paying workers in a country with a _________________________ currency improves its profits.
6. _________________________ policy refers to activities that directly affect a nation’s interest rates or money supply and _________________________policy involves using taxes and government spending to influence the money supply indirectly.