When a Company Brings Capital And/or Technology to a Host

question 101

Multiple Choice

When a company brings capital and/or technology to a host country, the host country benefits from the

• A) political effect of FDI.
• B) resource-transfer effect of FDI.
• C) balance-of-payments effect of FDI.
• D) bandwagon effect of FDI.

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Definitions:

Discount Period

The time frame within which a buyer can pay less than the full amount due on an invoice due to early payment incentives offered by the seller.

Credit to Cash

An accounting entry that indicates a decrease in an asset account, specifically reducing cash available.

Freight In

The cost associated with transporting goods into a warehouse or to the buyer, which is often included in the inventory cost of those goods.

Net Purchases

The total amount of purchases made by a business after subtracting returns, allowances, and discounts.