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The User Cost of Capital Is Given by the Following

question 107

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The user cost of capital is given by the following formula,where pK is the real price of capital goods,d is the depreciation rate,and r is the expected real interest rate.


Definitions:

Host Country

The nation in which a multinational company operates a facility or office, distinct from the country where its headquarters is located.

Parent Country

Parent country refers to the country where a multinational corporation is headquartered. Employees from this country working abroad for the corporation might be known as expatriates.

Third Country

A country that is neither the parent country nor the host country of an employer.

Third-Country National

An individual employed by a company who is neither a citizen of the country where the company is headquartered nor of the country where they are working.

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