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Answer:
The correct answer is letter "C": the interest rate the Fed charges commercial banks for borrowing funds.
Explanation:
The discount rate is the amount of interest the Federal Reserve (<em>Fed</em>) charges private banks for short-term loans. Banks will often borrow from each other for short-term needs with central banks like the Fed typically acting as a lender of last resort. As a result, it likes to keep its discount rates somewhere above what private banks are charging each other.
Answer: When a country's firm invests abroad, this helps to create CA in the same industry at home.
Explanation:
Comparative advantage is an economic term which refers to the ability of an economy to produce goods and services at lower opportunity cost than its trade partners.
The connection between comparative advantage (CA) and foreign direct investment (FDI) is that when a country's firm invests abroad, it helps to create comparative advantage in the same industry at home. Since a two-sided remote direct venture will have an effect on the correspondence of the relatively favorable position among the host and the source countries.
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