Explain the Role of Market Imperfections in FDI

question 23

Essay

Explain the role of market imperfections in FDI.

Master the adjustment processes for unrealized profits and intragroup transactions in NCI calculations.

Grasp the significance of fair value method and proportionate interest method in NCI measurement.

Explore the disclosure requirements for NCI in consolidated financial statements.

Examine how NCI interacts with profits, retained earnings, and interstate group activities.

---

Definitions:

Shock Absorber

A mechanical device designed to absorb and dampen shock impulses in vehicles and machinery, contributing to smoother movement.

CNS

The central nervous system, consisting of the brain and spinal cord, which processes and sends out nerve signals.

Somatic Nervous System

A section of the peripheral nervous system responsible for managing the intentional movement of the body by regulating skeletal muscles.

Eyeblink

A rapid closing and opening of the eyelid, which serves as a protective reflex to remove irritants from the surface of the eye or shield it from bright lights or approaching objects.