ECS3707 ASSESSMENT 4 0717513144
Which of the following can be a disadvantage to the host country of MNC investment?
a.
Transfer pricing - multinationals will always aim to reduce their tax liability to a
minimum.
b.
Crowding out - if overseas firms borrow in the domestic economy this may reduce
access to funds and increase interest rates.
c.
Low skilled employment – the jobs created in the local environment may be low-skilled
with the multinational employing expatriate workers for the more senior and skilled
roles.
d.
Influence and political pressure -multinational investment can be very important to a
country and this will often give them a disproportionate influence over government and
other organisations in the host country.
e.
all of the above
Human capital development requires investment
a.
capital-saving technological progress.
b.
by the World Health Organisation to improve education and health in developing
countries.
c.
in better education and training to improve skills.
d.
capital- augmenting technological progress.
e.
none of the above
A country’s human capital increases
a.
if its workers become better educated or healthier.
b.
only if its workers become better educated.
c.
only if its workers become healthier.
, ECS3707 ASSESSMENT 4 0717513144
d.
none of the above is correct.
e.
all of the above
The Washington Consensus s advocates the following policy stances:
a.
Governments are more likely to make things better than worse.
b.
Outward- looking development policies.
c.
Deregulation, the elimination of laws, rules and regulations that govern particular
industries which limit competition.
d.
Imposing of restrictions or barriers on the free exchange of goods between nations.
e.
A reduction of public expenditure priorities toward fields offering both high economic
reforms and the potential to improve income distribution.
Investment in physical and human capital is typically encouraged by
a.
lower taxes on interest income.
b.
lower taxes on investment returns.
c.
lower taxes on returns to education.
d.
all of the above
e.
none of the above
When the Harris-Todaro model is in equilibrium the expected urban wages will be
a.
greater than the rural wage rate.
Which of the following can be a disadvantage to the host country of MNC investment?
a.
Transfer pricing - multinationals will always aim to reduce their tax liability to a
minimum.
b.
Crowding out - if overseas firms borrow in the domestic economy this may reduce
access to funds and increase interest rates.
c.
Low skilled employment – the jobs created in the local environment may be low-skilled
with the multinational employing expatriate workers for the more senior and skilled
roles.
d.
Influence and political pressure -multinational investment can be very important to a
country and this will often give them a disproportionate influence over government and
other organisations in the host country.
e.
all of the above
Human capital development requires investment
a.
capital-saving technological progress.
b.
by the World Health Organisation to improve education and health in developing
countries.
c.
in better education and training to improve skills.
d.
capital- augmenting technological progress.
e.
none of the above
A country’s human capital increases
a.
if its workers become better educated or healthier.
b.
only if its workers become better educated.
c.
only if its workers become healthier.
, ECS3707 ASSESSMENT 4 0717513144
d.
none of the above is correct.
e.
all of the above
The Washington Consensus s advocates the following policy stances:
a.
Governments are more likely to make things better than worse.
b.
Outward- looking development policies.
c.
Deregulation, the elimination of laws, rules and regulations that govern particular
industries which limit competition.
d.
Imposing of restrictions or barriers on the free exchange of goods between nations.
e.
A reduction of public expenditure priorities toward fields offering both high economic
reforms and the potential to improve income distribution.
Investment in physical and human capital is typically encouraged by
a.
lower taxes on interest income.
b.
lower taxes on investment returns.
c.
lower taxes on returns to education.
d.
all of the above
e.
none of the above
When the Harris-Todaro model is in equilibrium the expected urban wages will be
a.
greater than the rural wage rate.
