International Relations - Final Exam #3

Question	Answer
Austerity	The application of policies to reduce public consumption, typically by cutting government spending, raising taxes, and restricting wages. (In order to make prompt and full payments on debts.)
Portfolio Investments	Investments in a foreign country via the purchase of stocks, bonds, or other financial instruments. Portfolio investors do not exercise managerial control of the foreign Operation.
Example of Portfolio Investments	Loans are Portfolio Investments, because while the investor in this transaction can claim some income, he or she does not play a role in the managing of the Investment. Portfolio Investors take little or no part in running their investment, their interest is simply in the rate of return. Even shares of stock represent a miniscule type of portfolio investment ownership with no managerial say.

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	Created by Waggadugu Mogho over 8 years ago