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The Ultimate Form of Foreign Investment Is Direct Ownership of Foreign-Based

question 76

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The ultimate form of foreign investment is direct ownership of foreign-based assembly or manufacturing facilities.


Definitions:

Rent-Control Scheme

A rent-control scheme is a government policy that sets a maximum price that can be charged for rental housing, aiming to make housing more affordable.

Equilibrium Rental Price

The price at which the quantity of rental properties supplied equals the quantity demanded.

Quota Rent

The earnings exceeding the normal anticipated returns due to import or export quotas.

Deadweight Loss

A decrease in economic effectiveness occurring when a good or service doesn't reach its free market equilibrium.

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