An American garment company establishes an office in the Slowakische Republic. How would the transaction affect U.S Net capital outflow? Does the transaction affect direct investment or portfolio investment?
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- What are the benefits and costs associated with foreign portfolio investment (FPI)?Explain four factors why China is among the huge recipients of foreign direct investment.Match the following international transactions to the correct type of foreign investment by choosing from the drop down menu: A US investment company buys Eurobonds issued by the Turkish Treasury Choose. Gaming company Zynga acquires Istanbul-based Peak Games Choose. İşbank borrows € 100 million from European Investment Bank, a bank owned by Foreign Portfolio Investment EU member states Foreign Direct Investment Teknosa imports Samsung smartphones from Korea. Not an Investment Toyota decides to increase the capacity of its factory in Sakarya Choose.
- Would each of the following transactions be included in net exports or net capital outflow? Be sure to say whether it would represent an increase or a decrease in that variable. A Japanese buys some durians from a Malaysian farmer.If U.S. goods were more desirable in the rest of the world than they used to be, how would NCO and the balance of trade be affected? Net capital outflow and the balance of trade would increase There would be no change in net capital outflow and the balance of trade. Net capital outflow and the balance of trade would decreaseGE Appliance Park in Louisville has been sold to Haier, a Chinese company. What form of Foreign Direct Investment is it for Haier?
- Identify the impact of a Foreign Direct Investment inflow on the following factors. Please explain each in one or two sentences: Employment: (Improve/Ambiguous/Deteriorate) Explanation: Competition: (Increase/Ambiguous/Decrease) Explanation: Trade balance: (Improve/Ambiguous/Deteriorate) Explanation:For Turkey, would each of the following transactions affect net exports or net capital outflow or both? In addition, would the same transactions represent an increase or a decrease in that variable? For each transaction, choose the correct answer from the drop down menu: Al Kharafi family from Kuwait buys a house in Trabzon. Choose. Türk Telekom buys network equipment from Ericsson, a Choose. firm in Sweden. Increase Net Exports, Decrease Net Capital Outflow Katya and Igor Oblomov from Moscow spend their Decrease Net Exports, Decrease Net Capital Outflow vacation in Antalya. Decrease Net Exports, Increase Net Capital Outflow Ford Otosan sells Transit vans to Germany. Increase Net Capital Outflow Arçelik buys Hitachi's Asian business for $300 million. Decrease Net Capital Outflow Increase Net Exports, Increase Net Capital OutflowExplain briefly what international investment law does. Why is it important? Is it a good or bad thing?
- Assume that you are a senior manager in a U.S. automobile company considering investing in production facilities in China, Russia or Germany. These facilities will serve the local market demand. Evaluate the benefits, costs, and risks associated with doing business in each nation. Which country seems to be the most attractive target for foreign direct investment? Why?How does the exchange rate fluctuations pose a risk to manufacturing companies that rely upon an export strategy to compete in foreign markets.Explain how exchange rates may impact the performance of international equity investment.