Consider the Following Two Cases

question 62

Multiple Choice

Consider the following two cases.In the first,a U.S.firm purchases 18% of a foreign firm.In the second,a U.S.firm builds a new production facility in a foreign country.Both are ________,with the first referred to as ________ and the second as ________.

• A) foreign direct investment (FDI) outflows; greenfield; brownfield
• B) foreign direct investment (FDI) inflows; greenfield; brownfield
• C) foreign direct investment (FDI) outflows; brownfield; greenfield
• D) foreign direct investment (FDI) inflows; brownfield; greenfield
• E) foreign direct investment (FDI); inflows; outflows

Interpret financial data and perform contribution margin analysis.

Apply break-even analysis to single and multi-product settings.

Understand the relationship between fixed costs, variable costs, and sales volume in cost-volume-profit analysis.

Understand the concept of net operating income and its calculation for different unit sales volumes.