Answer to Question #219423 in Microeconomics for zikry

Question

1.    A Swiss firm opens a watch factory in the United States.

a.     This is Swiss foreign direct investment and by itself increases Swiss net foreign investment.

b.    This is Swiss foreign direct investment and by itself decreases Swiss net foreign investment.

c.     This is Swiss foreign portfolio investment and by itself increases Swiss net foreign investment.

d.    This is Swiss foreign portfolio investment and by itself decreases Swiss net foreign investment.

Answer 1

a.     This is Swiss foreign direct investment and by itself increases Swiss net foreign investment.