If Your Canadian-Based Firm Opens and Operates a New Long

question 102

Multiple Choice

If your Canadian-based firm opens and operates a new long board factory in Costa Rica,what type of investment is your firm engaging in?

• A) foreign portfolio investment
• B) foreign financial investment
• C) foreign direct investment
• D) foreign capital investment

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Definitions:

Sellers

Individuals or entities engaged in the act of selling or providing goods and services to consumers or other businesses.

Rationing Function

The ability of market prices to allocate scarce goods and services to those who are willing and able to pay for them.

Surplus Goods

Items for which the quantity supplied exceeds the quantity demanded, often leading to price reductions to clear excess inventory.

Competitive Market

A market where numerous sellers compete to sell their goods or services to a large number of buyers, promoting efficiency and innovation.