A Country with High Unemployment Could Best Increase Its Employment

question 41

Multiple Choice

A country with high unemployment could best increase its employment by:

• A)encouraging foreign firms to establish subsidiaries that produce the same products local firms produce.
• B)encouraging foreign firms to establish licensing arrangements for products local firms produce.
• C)encouraging foreign firms to establish subsidiaries that produce products local firms do not produce.
• D)none of the above would reduce employment.

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Definitions:

Perpetuity

A type of annuity that pays a fixed amount of money to an investor at regular intervals indefinitely.

Present Value

Present value is the current worth of a future sum of money or stream of cash flows given a specified rate of return, reflecting the time value of money.

Present Value

The value today of a future money sum or cash flow stream, determined by a specified return rate.

Cash Flows

The comprehensive sum of cash being moved into and away from a business, critically impacting its financial agility.