Which of the Following Would Be an Example of Direct

question 243

Multiple Choice

Which of the following would be an example of direct foreign investment in DVCs?

• A) a grant from the World Bank to build an irrigation project in Kenya
• B) the financing of a new chemical plant in Peru by a German company
• C) a low-interest loan from the U.S. government to Turkey to purchase military hardware
• D) a loan from the Japanese government to the Indonesian government to pay for electronic equipment

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Definitions:

Total Cost

The sum of fixed costs and variable costs incurred in the production of goods or services.

Units of Output

The quantity of goods or services produced by a firm or industry.

Total Costs

The sum of all the costs incurred in the production of goods or services, including both fixed and variable costs.

Swords

Weapons with a long metal blade and a hilt with a hand guard, used for thrusting or striking.