If There Is a Decline in Home Bias, U

question 188

Multiple Choice

If there is a decline in home bias, U.S. residents are more likely to invest their savings in

• A) the domestic economy and this will lead to a decrease in the capital account surplus.
• B) foreign economies and this will lead to an increase in the capital account surplus.
• C) the domestic economy and this will lead to an increase in the capital account surplus.
• D) foreign economies and this will lead to a decrease in the capital account surplus.

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Definitions:

Culture

The shared customs, traditions, values, and social norms that characterize a group of people or society.

Communication Flows

The ways in which information is transmitted within an organization or group, which can be upward, downward, or lateral.

Downward

A direction of communication or authority that flows from higher levels of a hierarchy to lower levels within an organization.

Upward

in a higher position or direction; often used to describe movements within an organization's hierarchy from lower to higher levels.