Which of the Following Two Statements Accurately Reflects the Trend

question 27

Multiple Choice

Which of the following two statements accurately reflects the trend in foreign direct investments over the past 30 years?

• A) There has been a rapid increase in the total volume of FDI undertaken and there has been a change in the importance of various countries as sources for FDI
• B) There has been a rapid increase in the total volume of FDI undertaken and the countries that have been instrumental as sources of FDI have remained the same
• C) There has been a rapid decrease in the total volume of FDI undertaken and there has been a change in the importance of various countries as sources for FDI
• D) There has been a rapid decrease in the total volume of FDI undertaken and the countries that have been instrumental as sources of FDI have remained the same
• E) There has been a slow increase in the total volume of FDI undertaken and there has been no change in the importance of various countries as sources for FDI

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Definitions:

Denominated

Term used to specify the currency in which a financial obligation is expressed or a financial asset's value is designated.

Foreign Currency Translation

The process of converting the financial results of a company's foreign operations into the reporting currency of the parent company.

Deferred Tax Liability

A tax obligation that a company owes but has not yet paid, arising from temporary differences between its taxable income and its accounting earnings.