If the American Company Stryker Builds and Operates a New

question 49

Multiple Choice

If the American company Stryker builds and operates a new factory in France,

• A)it engages in foreign direct investment.By itself this action lowers U.S.net capital outflow.
• B)it engages in foreign direct investment.By itself this action raises U.S.net capital outflow.
• C)it engages in foreign portfolio investment.By itself this action lowers U.S.net capital outflow.
• D)it engages in foreign portfolio investment.By itself this action raises U.S.net capital outflow.

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Definitions:

Pure Monopoly

A market structure where a single seller controls the entire market for a particular product or service, facing no competition.

Economic Efficiency

A state where every resource is optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.

Peak-Load Pricing

A pricing strategy used to manage demand by varying prices at different times or days, especially during high-demand periods.

Two-Part Tariff

A pricing strategy that includes a fixed fee plus a variable charge for each unit of the product or service consumed.