When Microsoft Establishes a Distribution Center in France,U

question 96

Multiple Choice

When Microsoft establishes a distribution center in France,U.S.net capital outflow

• A)increases because Microsoft makes a portfolio investment in France.
• B)decreases because Microsoft makes a portfolio investment in France.
• C)increases because Microsoft makes a direct investment in capital in France.
• D)decreases because Microsoft makes a direct investment in capital France.

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Definitions:

Maintenance Department

A division within a company responsible for maintaining equipment, facilities, and systems to ensure efficient and safe operations.

Variable Costs

Costs that change in proportion to the level of production or business activity, such as raw materials and direct labor.

Fixed Costs

Expenses that do not fluctuate with the level of production or sales, such as rent, salaries, and insurance premiums.

Transfer Price

The price at which divisions of a company transact with each other for goods or services.