Which of the Following Statements Is Most Likely to Be

question 13

Multiple Choice

Which of the following statements is most likely to be true regarding the adverse effects of FDI on the host country?

• A)It decreases the level of competition in the host country.
• B)It tends to increase the prices of the products.
• C)It leads to a high rate of unemployment in the long run.
• D)When a foreign subsidiary imports a substantial number of its inputs from abroad,it results in a debit on the current account of the host country's balance of payments.
• E)When a foreign subsidiary sends its profits to its home country,it results in the depletion of gold reserves of the host country.

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Definitions:

Management Accounting

The process of preparing management reports and accounts that provide accurate and timely financial and statistical information required by managers to make day-to-day and short-term decisions.

Activity-Based Costing

A costing methodology that assigns overhead and indirect costs to specific activities, leading to more accurate product or service costing.

Mass Service

A service concept characterized by high service volume and process standardization, catering to a large market with minimal customization.

Hybrid Costing

A costing system that combines elements of both job costing and process costing, applicable in manufacturing environments producing similar products in batches.