Ownership Restrictions and Performance Demands Are Used by ________

question 24

Multiple Choice

Ownership restrictions and performance demands are used by ________.

• A) host countries to promote FDI
• B) host countries to restrict FDI
• C) home countries to promote FDI
• D) home countries to restrict FDI

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Definitions:

Substitution Swap

Exchange of one bond for another more attractively priced bond with similar attributes.

Duration

An indicator that represents how the price of a bond or any similar type of debt is affected by interest rate fluctuations, displayed as a duration in years.

Mispricing

Situations where the market price of an asset deviates from its theoretical or intrinsic value.

Coupon Payments

Regular interest payments made to bondholders, typically on a semi-annual basis, based on the bond's interest rate.