The Best Way to Directly Acquire the Shares of a Foreign

question 40

Multiple Choice

The best way to directly acquire the shares of a foreign company is through

• A) International mutual funds.
• B) Global mutual funds.
• C) American Depository Receipts.
• D) Investment in U.S. companies operating internationally.
• E) Eurobonds.

---

Definitions:

Scarce Factor

A resource or input in limited supply relative to demand, which can constrain production, increase costs, or cause competition.

Diamond Monopoly

A diamond monopoly refers to a market structure where a single firm has exclusive control over the production and sale of diamonds.

Barriers To Entry

Obstacles that make it difficult for new competitors to enter a market, such as high start-up costs, complex regulations, or strong brand loyalty among consumers.

Economies Of Scale

Reductions in per unit costs achieved through increased levels of production.