Foreign direct investment refers to
a. purchasing significant amounts of a foreign country's currency.
b. purchasing substantial shares of a foreign company's stock or setting up production facilities in anothercountry.
c. the purchase of large amounts of overseas goods; e.g., Wal-Mart purchases many of their products fromChina.
d. sales of military armaments to foreign governments.
The least globalized nations also tend to be the
a. largest in economic size.
b. richest and most powerful.
c. least developed and most autocratic.
d. smallest and most dependent on trade.
Even in a world with floating exchange rates, states have some ability to control the value of their currency. What is an advantage of having a weak currency?
a. Exporting industries benefit from a weak currency as their goods are cheaper for foreigners to purchase.
b. Traveling citizens benefit from a weak currency as they can purchase more goods abroad.
c. Consumers benefit from a weak currency as they can afford to buy more imports.
d. There are no advantages to a weak currency.
The financial procedure that is used to calculate the values of currencies and credits when capital is transferred across borders through trade, investment, foreign aid, and loans is called _____.
a. capital flight
b. the international monetary system
c. currency adjustment
d. the capital mobility hypothesis
The study of the relationship between geography and the economic conditions and behavior of states that define their levels of production, trade, and consumption of goods and services is the field of _____.
a. geo-economics
b. geo-politics
c. monetary policy
d. globalization
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