Most Foreign Investment Is Today Is Directed Towards High-Income Countries

question 62

Multiple Choice

Most foreign investment is today is directed towards high-income countries because

• A)there are tax breaks and subsidies available.
• B)markets are larger, so transportation costs are minimized by producing near the market.
• C)high-income countries are politically stable.
• D)there are no economies of scale in low-income countries.

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Definitions:

Free Energy

A thermodynamic quantity that represents the amount of energy in a system that is available to do work.

Reactants

Substances initially present in a chemical reaction that are consumed during the reaction to create products.

Endergonic Reactions

Chemical reactions that require an input of energy to proceed and are characterized by a positive change in free energy.

Exergonic Reactions

Chemical reactions that release energy, generally in the form of heat, and occur spontaneously.