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Figure: A Firm's Production With and Without
Offshoring II
(Figure: A Firm's Production With and Without Offshoring
II. If the home country offshores components to a foreign
Country and then exports R&D to the foreign country and
Imports components from the foreign country, then:
Net Capital Spending
Net capital spending is the total expenditure on fixed assets minus any sales of fixed assets, indicating a company's investment in its physical assets.
Comprehensive Income
Represents the total change in equity for a business entity not resulting from transactions with owners, including all revenues, gains, expenses, and losses.
Net Fixed Assets
The value of a company’s property, plant, and equipment minus any accumulated depreciation, indicating the tangible assets' net book value.
Liquid Asset
Assets that can be quickly and easily converted into cash without significant loss of value, including cash itself, marketable securities, and accounts receivable.
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