A Swiss Watchmaker Opens a Factory in the United States

question 32

Multiple Choice

A Swiss watchmaker opens a factory in the United States.This is an example of Swiss

• A)exports.
• B)imports.
• C)foreign portfolio investment.
• D)foreign direct investment.

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Definitions:

Interest Rate

An interest rate is the percentage at which interest is paid by a borrower for the use of money they borrow from a lender or the return on investment that an investor receives from their invested capital.

Cash Flows

Refers to the streams of incoming and outgoing cash transactions resulting from a company's operational, investing, and financing activities.

Future Value

The value of an investment at a specific future date, considering compound interest or returns.

Interest Rate

The cost of borrowing money or the compensation for the service and risk of lending money, expressed as a percentage of the principal loan amount.