In the Context of Foreign Direct Investment, Which of the Following

question 52

Multiple Choice

In the context of foreign direct investment, which of the following is a benefit of offshoring?

• A) It involves no significant risk.
• B) It has the potential for high profits.
• C) It represents a strong opportunity for small firms.
• D) It requires little investment.

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Definitions:

Gross Profit

The amount of money a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.

FIFO Perpetual

An accounting method where the first items placed in inventory are the first ones sold, continuously tracking inventory levels.

LIFO Perpetual

A method of inventory valuation where the last items acquired are the first to be used or sold, continuously updated to reflect remaining inventory.

Average Cost Periodic

A costing method where the cost of goods sold and ending inventory are valued at the average cost of all goods available for sale during the period.