In Which Way Can the Source Country's Balance of Payments

question 39

Multiple Choice

In which way can the source country's balance of payments benefit from an FDI made in a foreign country?

• A) From cash outflow during the initial investment to finance the FDI
• B) If the purpose of the foreign investment is to serve the home market from a low-cost production location
• C) From the inward flow of foreign earnings
• D) If FDI is a substitute for direct exports

Grasp the impact of flotation costs on the cost of financing.

Learn the concepts of the marginal cost of capital (MCC) and the investment schedule breakpoint.

Gain knowledge on the cost of different types of capital: debt, preferred stock, equity, and retained earnings.

Analyze how capital structure affects a firm’s cost of capital.

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Definitions:

One-down Position

A situation or stance in which an individual intentionally places themselves in a less powerful or submissive role in a communication or power dynamic.

Communication

The process of exchanging information, ideas, feelings, and meanings through verbal or non-verbal methods.

Cross-cultural Communication

The process of recognizing and understanding the differences and similarities in communication across various cultures to effectively communicate.

Symbolic Gestures

Symbolic gestures are actions performed to convey particular intentions or meanings without using words, often carrying significant symbolic value in social or cultural contexts.