When Firms from One Country Make Investments in Another, It

question 51

Multiple Choice

When firms from one country make investments in another, it is known as __________.

• A) direct foreign investment (DFI)
• B) direct licensing (DL)
• C) foreign direct investment (FDI)
• D) investment transfer authorization (ITA)

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Definitions:

Initial Investments

Initial investments refer to the upfront capital invested in starting a business or a project, encompassing costs such as machinery, equipment, and property.

After-Tax Discount Rate

The rate used to discount future cash flows to their present value, taking into account the impact of taxes.

Income Tax Rate

The portion of one's income that is handed over to the state as taxation.

Straight-Line Depreciation

A manner for allocating the expense of a material asset across its functional life in even yearly figures.