The Three Main Benefits of Inward FDI for a Host

question 29

True/False

The three main benefits of inward FDI for a host country are the resource-transfer effect,the government effect,and the balance-of-payment effect.

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Definitions:

Minimum Return

The lowest acceptable rate of return on an investment, often used to guide financial decisions and risk management strategies.

Transfer Prices

Prices charged for goods, services or intangible property transferred within an organization between divisions or subsidiaries.

Decentralized Units

Subsections of an organization that operate semi-independently, making their own decisions and handling their specific operations.

Investment Turnover

A financial ratio that measures the efficiency of a company's investment in its assets by comparing net sales to average total assets.