Which of the Following Is a Primary Cost of FDI

question 19

Multiple Choice

Which of the following is a primary cost of FDI to host countries? 

• A) Capital inflow 
• B) Increase in competition between local firms 
• C) Capital and job loss 
• D) Loss of sovereignty

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Definitions:

Cost Control

The process of monitoring and managing the expenses of a business to adhere to a budget or increase profitability.

Flexible Budget Cost Variance

The difference between actual costs and the costs allocated in the flexible budget, which adjusts based on actual levels of activity.

Quantity Variance

A variance that is computed by taking the difference between the actual quantity of the input used and the amount of the input that should have been used for the actual level of output and multiplying the result by the standard price of the input.

Price Variance

The difference between the actual cost of a good or service and its budgeted or standard cost.