Which of the Following Would BEST Explain Why Foreign Direct

question 58

Multiple Choice

Which of the following would BEST explain why foreign direct investment might be attracted to the United States?

• A) U.S. price ceilings that hold down the price of energy
• B) U.S. wage rates exceeding the productivity of U.S. labor
• C) artificially high prices being charged for the stock of U.S. firms
• D) anticipations of future reductions in U.S. tariff levels

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