Zebra Toy Company Invests a Large Sum of Money in Retail

question 21

Multiple Choice

Zebra Toy Company invests a large sum of money in retail stores located in a foreign country.Zebra intends to bring its foreign earnings back home to the United States.This practice is known as:

• A) repatriation of profits.
• B) inflow profit streaming.
• C) expropriation.
• D) comity.

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Definitions:

Optimum Level

The most favorable point or degree at which the efficiency or effectiveness of a function or system is maximized.

MSB Curve

The Marginal Social Benefit curve, representing the additional benefit to society as a whole from consuming one more unit of a good.

MCA Curve

A term that could be mistaken but likely refers to the Marginal Cost Curve, which depicts the additional cost of producing one extra unit of output.

Marginal External Cost

The additional cost incurred by society as a whole due to one more unit of a good being produced, not accounted for by the producer.