Q11. Free Trade. There has been considerable momentum to reduce or remove trade barriers in an effort to achieve “free trade” Yet, one disgruntled executive of an exporting firm stated, “free trade is not conceivable; we are always at the mercy of exchange rate. Any counter can use this mechanism to impose trade barriers.” What does this statement mean?
Q12. International investments U.S. -Based MNCs commonly invest in foreign countries.
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- Assume that the dollar is presently weak and is expected to strengthen over time. How will these expectations affect the tendency of U.S. investors to invest in foreign countries?
- Explain how low U.S. interest rates can affect the tendency of U.S. -based MNCs to invest abroad.
- In general terms. What is the attraction of foreign investments to U.S. Investors?