Which of the Following Would Best Explain Why Foreign Direct

question 106

Multiple Choice

Which of the following would best explain why foreign direct investment might be attracted to the United States?

• A) U.S.price ceilings that hold down the price of energy
• B) U.S.wage rates exceeding the productivity of U.S.labor
• C) Artificially high prices being charged for the stock of U.S.firms
• D) Anticipations of future reductions in U.S.tariff levels

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Definitions:

Result

The outcome or consequence of an action, experiment, or process.

Statistically Significant

A term indicating that the results of a study are unlikely to have occurred by chance alone, according to predefined criteria.

Experimental Group

The group in a scientific study that receives the treatment or intervention being tested, in contrast to the control group.

Control Group

in experiments, a group of subjects that does not receive the experimental treatment and is used as a baseline to compare the effects of that treatment.