Explain the Underlying Basis for Foreign Direct Investment, and Discuss

question 16

Essay

Explain the underlying basis for foreign direct investment, and discuss several factors that may contribute to it. What factors have likely contributed to the current U.S. net direct investment position?

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Definitions:

Standard Error

A measure of the dispersion or variability of a sample statistic from the population parameter, often used in inferential statistics.

Standard Deviation

Standard deviation is a measure of the amount of variation or dispersion of a set of values.

Sample Size

The number of observations or data points collected in a statistical study.

Central Limit Theorem

A statistical theory that states the distribution of the sample mean of a large enough number of independent, identically distributed variables will be approximately normal, regardless of the population's distribution.