The Flow of Foreign Direct Investment Out of a Country

question 37

Multiple Choice

The flow of foreign direct investment out of a country is

• A) forfeiture of national investment.
• B) loss of national investment.
• C) expenditure of FDI.
• D) outflow of FDI.
• E) a reflection of the loss of jobs.

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Definitions:

Perpetuity

An infinite series of equal payments at equal intervals of time.

Present Value

The present-day value of a sum of money to be received in the future or a series of future cash flows, based on a certain return rate.

Cash Flow

A financial measurement that shows the net amount of cash and cash-equivalents being transferred into and out of a business over a specified period.

Annuity

A finite series of equal payments at equal intervals of time. In an ordinary annuity the payments occur at the ends of the time periods. In an annuity due, they occur at the beginnings.