Which of the Following Is an Implication of Investment from Abroad

question 51

Multiple Choice

Which of the following is an implication of investment from abroad?

• A)Poor countries become poorer because profits go to the foreign owners.
• B)Foreign investment increases the destination country's stock of capital; therefore, it promotes growth.
• C)Foreign investment increases GDP but not GNP.
• D)Foreign investment is unfair because only foreigners benefit from it.

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Definitions:

Legal Capacity

The ability of an individual or entity to enter into binding contracts, sue, and be sued, recognized by law.

Specific Property

Refers to a distinct, identifiable piece of property, as opposed to a general right or interest.

Settlor

A person who creates a trust by providing the initial trust property and setting the terms of the trust.

Federal Estate Tax

A tax levied by the federal government on the transfer of the taxable estate of a deceased person, whether transferred via will, according to state laws, or through an estate plan.