The Formula for Calculating the Net Increase in Foreign-Owned Holdings

question 138

Multiple Choice

The formula for calculating the net increase in foreign-owned holdings is

• A) change in foreign-owned assets in the United States minus change in U.S.-owned assets abroad.
• B) change in U.S.-owned assets abroad minus change in foreign-owned assets in the United States.
• C) change in foreign-owned assets in the United States minus change in U.S.-owned assets abroad plus statistical discrepancy.
• D) change in U.S.-owned assets abroad minus change in foreign-owned assets in the United States plus statistical discrepancy.

---

Definitions:

Collude

Collude refers to an agreement, usually secretive, between two or more parties to limit open competition by deceiving or defrauding others of their legal rights, or to obtain an objective forbidden by law typically by defrauding or gaining an unfair market advantage.

Antitrust Policy

Regulations and laws designed to promote competition and prevent monopolies, ensuring fair competition in the market.

Monopoly Power

The ability of a single seller to control market prices and exclude competitors.

Price Wars

A competitive situation where retailers or producers continually reduce prices to undercut competitors, often at the expense of profit.