Location Externalities, Such as the Presence of a Skilled Labor

question 60

True/False

Location externalities, such as the presence of a skilled labor pool, affect a company's foreign direct investment decision.

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Definitions:

Convertible Notes

Debt instruments that can be converted into a specified number of shares of the issuing company at certain times during its life, usually at the discretion of the note holder.

Liability

A present obligation of the entity to transfer an economic resource as a result of past events.

Equity

The value of an owner's interest in a property or business, after subtracting liabilities.