Tony, an Italian Citizen, Opens and Operates a Spaghetti Factory

question 145

Multiple Choice

Tony, an Italian citizen, opens and operates a spaghetti factory in Canada. This counts as which of the following?

• A)Italian foreign direct investment that increases Italian net capital outflow
• B)Italian foreign direct investment that decreases Italian net capital outflow
• C)Italian foreign portfolio investment that increases Italian net capital outflow
• D)Italian foreign portfolio investment that decreases Italian net capital outflow

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Definitions:

Marginal Cost

The increase in total cost that arises from producing one additional unit of a product or service.

Market Output

The total quantity of goods or services produced and supplied in a market at a given time.

First-move Ability

The advantage or strategic benefit gained by being the first to act or move in a given situation, often discussed within the context of game theory and competitive scenarios.

Optimal Output

The level of production where a firm maximizes its profits or minimizes its losses.