If the Economic Growth Rate INCREASES from 1% to 5%,the

question 67

Multiple Choice

If the economic growth rate INCREASES from 1% to 5%,the simple accelerator hypothesis suggests that

• A)investment will continue to rise as output increases.
• B)investment will fall as output increases.
• C)investment will rise since the rate of change in output increases.
• D)None of the above is correct.

Grasp the significance and impact of foreign direct investments in the international market.

Describe the legal and ethical considerations for companies operating internationally, including adherence to local laws, labor practices, and anti-corruption measures.

Comprehend the concept of culture and cultural intelligence in the context of international business.

Recognize the challenges and criticisms faced by multinational corporations (MNCs) from host countries.

---

Definitions:

Risky Asset

An asset that has a significant degree of risk associated with it, offering the potential for higher returns in exchange for the increased risk.

Standard Deviation

A statistic that measures the dispersion of a dataset relative to its mean and is used in finance to gauge the amount of historical volatility of an investment.

Risk-Free Asset

An investment that is expected to return its principal and interest with near certainty, such as government bonds from stable countries.

Risky Asset

An investment that has a significant degree of uncertainty in its returns.