In 2007,the Government of Saudi Arabia Invested About $900 Billion

question 282

True/False

In 2007,the government of Saudi Arabia invested about $900 billion in western companies.This strategic global investment was considered a way for Saudi Arabia to expropriate others from investing in its nation.
Expropriation refers to a government taking over the assets of a non-domestic company who is doing business in its nation.Saudi Arabia,in this example,created a sovereign wealth fund,where it invested government funds in foreign companies.Sovereign Wealth Funds are a form of foreign direct investment.

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Definitions:

Additional Customer

Refers to a new or extra consumer who purchases or is likely to purchase goods or services from a business, contributing to the firm's customer base growth.

Demand Equals

A condition where the quantity of a good or service demanded by consumers matches the quantity supplied at the current price.

Average Total Cost

The total cost divided by the quantity produced, representing the cost of producing each unit of output.

Long Run

A period in which all factors of production and costs are variable, allowing full adjustment to changes.