In Modern Times, It Is Not a Country Per Se

question 5

Multiple Choice

In modern times, it is not a country per se but rather a controller of capital and know-how that gives the country in which it is domiciled a comparative advantage over another country. These controllers of capital and technology are

• A)the state.
• B)the multinational corporations (MNCs).
• C)portfolio managers of international mutual funds.
• D)none of the above

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Definitions:

Payback Period

The payback period is the length of time required to recover the cost of an investment, calculated by dividing the initial investment by the annual cash inflow.

Discounted Payback

A capital budgeting method that calculates the time needed to recoup investment costs, taking the time value of money into account.

Positive Cash Flows

The situation where a company's cash inflows exceed its cash outflows, indicating financial strength and the ability to finance operations, debt, and investments.