Which of the Following Terms Refers to the Assurance of a Host

question 48

Multiple Choice

Which of the following terms refers to the assurance of a host government that foreign investors will be treated the same way as local investors?

• A) nondiscrimination guarantee
• B) repatriation guarantee
• C) stabilization clause
• D) appraisal right

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Definitions:

Capital Budgeting

The process by which a business determines and evaluates potential large expenses or investments.

Straight-Line Depreciation

A method for divvying the expense of a tangible asset through its operational duration in equivalent annual amounts.

Incremental Sales

The additional sales generated by a particular business activity or decision.

Operating Expenses

Expenses that are incurred during the normal operation of a business, excluding the cost of goods sold.