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According to the _____ View of FDI, MNEs Extract Profits

question 65

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According to the _____ view of FDI, MNEs extract profits from the host country and take them to their home country, giving nothing of value to the host country in exchange.


Definitions:

Interest Rate

The percentage of a sum of money charged for its use, determining the cost of borrowing or the return on savings.

Unrealized Profits

Earnings that are reported on paper from investments but are not yet actualized through a sale transaction.

Intercompany Sales

Transactions between companies under the same parent company, often used for the transfer of goods and services.

Gross Margin

A company's sales revenue minus its cost of goods sold, used to assess the efficiency of a company's core operations.

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