If You Know That a Country's Net Foreign Investment Is

question 188

Essay

If you know that a country's net foreign investment is positive,what does that tell you about the relationship between the country's national saving and private investment? (Assume that the capital account is zero and net transfers are zero.)

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Definitions:

Overhead Cost

Expenses related to the operation of a business that are not directly tied to a specific product or service, such as rent and utilities.

Plantwide Overhead Rate

A single overhead rate calculated by dividing total factory overhead costs by total direct labor hours or machine hours, applied uniformly across all products.

Manufacturing Overhead

The indirect factory-related costs that are incurred when a product is manufactured including costs related to depreciation, utilities, and maintenance.

Plantwide Overhead Rate

A single overhead rate calculated by dividing total manufacturing overhead costs by the total measure of activity across the entire plant.