When a Company Brings Capital And/or Technology to a Host

question 101

Multiple Choice

When a company brings capital and/or technology to a host country, the host country benefits from the

• A) political effect of FDI.
• B) resource-transfer effect of FDI.
• C) balance-of-payments effect of FDI.
• D) bandwagon effect of FDI.

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Definitions:

Overhead Costs

Expenses related to the day-to-day operations of a business that are not directly tied to a specific product or service.

Cost of Goods Manufactured

The total production cost of goods completed during a specific period, including labor, material, and overhead costs.

Raw Materials

The basic, unprocessed materials used in manufacturing to produce finished goods.

Work in Process

Work in process (WIP) refers to the materials and labor that are in the production process but have not yet been completed or transformed into finished goods.