For the ________ Advantage to Accrue, Undertaking the Business Activity

question 69

Multiple Choice

For the ________ advantage to accrue, undertaking the business activity must be more profitable overseas than undertaking it locally.

• A) ownership
• B) location
• C) home country
• D) internalization.

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Definitions:

Interest Rate

The percentage of an amount of money charged for its use per period of time, often annually.

Present Value

The present-day value of a future amount of money or series of cash flows, based on a given rate of return.

Interest Rate

Lenders impose a charge, as a percentage of the principal, on borrowers for the use of their assets.

Present Value

The value today of a future money sum or sequence of cash flows, based on a specific interest rate.