QUESTION 15 The existence of inefficiencies in capital markets due to lack of disclosure and other reasons that may prevent portfolio investment from equalizing rates of return for given levels of risk internationally supports the hypothesis of foreign direct investment: O a. Market Disequilibrium Ob. Market Structure O . Market equilibrium O d. Market Failure O e. Government Imposed Distortion QUESTION 16 A DISC (in international taxation) is a: O a. Company located in a foreign country that conducts domestic and international sales. Ob. Company incorporated in a possession territory of the United States. OC. Dummy Company to which a U.S. export company sources its profits. O d. Dummy International Sales Commission (for Tax Havens) O e. Sales Company working with international dummies. QUESTION 17 Answer questions 17 and 18 based on the following information: As you know, Flabovia has adopted a Value Added Tax (VAT); the tax rate across the board is 15%. A farmer grows vegetables and sells them to the wholesaler for $1/lb. The wholesaler sells them to the local market for $3/lb. The market then sells them to its customers for $10/lb. Question 17. The total tax received by the government is S ,while the total tax paid by the customer is $ |(Write-in your answer).
QUESTION 15 The existence of inefficiencies in capital markets due to lack of disclosure and other reasons that may prevent portfolio investment from equalizing rates of return for given levels of risk internationally supports the hypothesis of foreign direct investment: O a. Market Disequilibrium Ob. Market Structure O . Market equilibrium O d. Market Failure O e. Government Imposed Distortion QUESTION 16 A DISC (in international taxation) is a: O a. Company located in a foreign country that conducts domestic and international sales. Ob. Company incorporated in a possession territory of the United States. OC. Dummy Company to which a U.S. export company sources its profits. O d. Dummy International Sales Commission (for Tax Havens) O e. Sales Company working with international dummies. QUESTION 17 Answer questions 17 and 18 based on the following information: As you know, Flabovia has adopted a Value Added Tax (VAT); the tax rate across the board is 15%. A farmer grows vegetables and sells them to the wholesaler for $1/lb. The wholesaler sells them to the local market for $3/lb. The market then sells them to its customers for $10/lb. Question 17. The total tax received by the government is S ,while the total tax paid by the customer is $ |(Write-in your answer).
Chapter10: Measuring Exposure To Exchange Rate Fluctuations
Section: Chapter Questions
Problem 1CT
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