A Large Amount of Foreign Direct Investment into a Country

question 76

Multiple Choice

A large amount of foreign direct investment into a country will most likely result in:

• A) more jobs.
• B) higher inflation.
• C) higher tariffs.
• D) lower taxes.

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Definitions:

Operating Income

Income generated from normal business operations, excluding costs and expenses.

Manufacturing Margin

The difference between the cost of production and the selling price of manufactured goods.

Contribution Margin

The amount of revenue from sales that exceeds variable costs, contributing to covering fixed costs and generating profit.

Operating Income

The profit realized from a business's operations, calculated by subtracting operating expenses from gross profit.