All of the Following Describes China's Investments in International Development

question 14

Multiple Choice

All of the following describes China's investments in international development EXCEPT:

• A) lending to developing countries has outpaced that of the World Bank.
• B) China only makes loans to communist countries.
• C) loans are made in return for guarantees to supply industrial materials and fossil fuels.
• D) foreign investment allows China to secure privileged trade deals.

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Definitions:

Natural Monopoly

A market condition where due to high fixed costs or unique resources, a single company can supply a product or service at a lower cost than any potential competitor, thus dominating the market.

Unit Costs

The price a business incurs for the production, storage, and distribution of a single unit of a certain product or service.

Minimum Efficient Scale

The smallest amount of production a company can achieve while still taking full advantage of economies of scale regarding costs per unit of output.

Diseconomies of Scale

The condition when a company grows so large that the costs per unit increase, causing a decrease in efficiency.