Economic Growth and International Investment Quiz

Economic growth entails an increase in the overall standard of living within a society.

FDI represents investments made by foreign entities directly into the economy of another country.

GDP is a measure of the total value of goods and services produced within a country's borders over a specific period.

Imports are not counted as a component of GDP; they represent goods and services produced outside the country's borders.

One of the primary aims of international investment is to foster economic growth and development across countries.

Climate change is an external factor typically not directly tied to economic growth.

Higher savings rates result in more capital accumulation, leading to increased productivity and output per worker.

The theory of comparative advantage advocates for countries to specialize in producing goods and services in which they have a relative efficiency or advantage.

FDI denotes investments made by foreign entities directly into the economy of another country.

Portfolio investment involves investing in a variety of assets such as stocks, bonds, and other securities to spread risk.

The Harrod-Domar model posits that economic growth is primarily determined by the level of savings and investment in an economy.

While technological progress can indirectly affect investment, it is not typically considered a direct factor influencing international investment flows.

The Bretton Woods Conference established key international financial institutions, including the IMF and World Bank, to promote monetary cooperation and stability.

The Heckscher-Ohlin theory suggests that a country's comparative advantage in trade is determined by its relative factor endowments, such as land, labor, and capital.