hw#4_class.pdf - CALIFORNIA STATE UNIVERSITY \u2013 FULLERTON Econ 335 \u2013 International Economy Homework#4 \u2013 Due Date Monday in class 1 Given the limits

hw#4_class.pdf - CALIFORNIA STATE UNIVERSITY – FULLERTON...

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CALIFORNIA STATE UNIVERSITY FULLERTON Econ 335 International Economy Homework#4 Due Date: Monday, June 17, 2019 in class 1 1.Given the limits of international cartel power, one alternative for a developing country to put upward pressures on the world prices of its primary product exports is to: a.tax its primary-product exports. b.impose tariffs on primary-product imports. c.subsidize its primary product exports. d.subsidize its manufacturing imports. 2. Foreign Direct Investment (FDI) refers to: a. the flow of funding provided by an investor or lender to establish or acquire a foreign company or to expand or finance an existing foreign company that the investor owns and controls. b. the hot money that an investor needs to get registered in a foreign stock exchange to make investments, and have the liberty to sell and take back the stocks purchased earlier. c. a method of funding business adopted by a foreign investor by participating directly in the secondary markets of a country, through investments in the country’s stocks or bonds.
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