Which of the Following Is Not a Reason Foreign Investment

question 45

Multiple Choice

Which of the following is not a reason foreign investment can be economically beneficial?

• A) It increases the GDP of the host country by giving it access to additional resources.
• B) It increases the GDP of the investing country by providing it with ways to earn higher returns on its capital.
• C) It makes the world a more efficient place by moving capital from places with low returns to places with high returns.
• D) It always leads to a higher interest rate.

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Definitions:

Supplies Expense

Costs associated with consumable items or supplies used during an accounting period.

Supplies Account

An account used to track the cost of supplies used by a business during an accounting period that are not directly tied to production.

Income Statement

A financial report that shows a company's revenues, expenses, and profits over a specific period, providing insight into its operational efficiency.

Unearned Revenue

Amounts received for goods or services that have not yet been provided, recorded as a liability until the service or product is delivered.