When Microsoft Establishes a Distribution Center in France,U

question 96

Multiple Choice

When Microsoft establishes a distribution center in France,U.S.net capital outflow

• A)increases because Microsoft makes a portfolio investment in France.
• B)decreases because Microsoft makes a portfolio investment in France.
• C)increases because Microsoft makes a direct investment in capital in France.
• D)decreases because Microsoft makes a direct investment in capital France.

---

Definitions:

Parmalat

An Italian dairy and food corporation that became famous for a massive corporate fraud and bankruptcy scandal in 2003.

WorldCom

A telecommunications company that was involved in one of the largest accounting fraud scandals in history, leading to its bankruptcy in 2002.

Volcker Rule

Part of the Dodd-Frank Wall Street Reform and Consumer Protection Act that restricts U.S. banks from making certain kinds of speculative investments that do not benefit their customers.

Proprietary Trading

When a firm trades stocks, bonds, currencies, commodities, derivatives, or other financial instruments with its own money, rather than its clients' money, for its own profit.