Provide a Concise Statement on the Relationship Between Multinational Corporation

question 13

Essay

Provide a concise statement on the relationship between multinational corporation investment and economic activity in developing countries with respect to:
(a) the three gaps,
(b) comparative advantage,
(c) the debt crisis,
(d) scale economies, and
(e) pattern of consumption.

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Definitions:

Cash Flows

The overall volume of cash inflows and outflows within a corporation, impacting its availability of liquid funds.

Free Cash Flow

A financial metric that measures the amount of cash generated by a company after accounting for capital expenditures.

Net Income

The total profit of a company after all expenses, taxes, and costs have been deducted from total revenue, indicating financial performance.

Cost of Goods Sold

Expenses directly linked to the creation of a company's sold goods, which include the costs of materials and labor.