In General,foreign Direct Investment Is Less Expensive and Less Risky

question 5

True/False

In general,foreign direct investment is less expensive and less risky than either licensing or exporting.

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Definitions:

Capital Goods

Long-lasting goods acquired or manufactured by a business that are used to produce other goods or services.

Interest Rates

The percentage charged on borrowed funds or paid on deposits over time, reflecting the cost of borrowing or the reward for saving.

Loanable Funds

The money available for borrowing and lending in the financial markets, determined by savings and investments.

Interest Rate

The percentage of a borrowed sum that the lender charges as interest to the borrower, usually specified as an annual percentage of the total loan amount.