A Form of Foreign Direct Investment in Which a Firm

question 10

Multiple Choice

A form of foreign direct investment in which a firm starts a new foreign business from the ground up is called ________.

• A) joint venture alliance
• B) entrepreneurism
• C) greenfield investment
• D) 50/50 joint venture

Distinguish between capitalist and command (or socialist) economies in terms of property rights, decision-making, and economic coordination.

Learn the role of economic systems in resolving basic economic problems and their influence on the production possibilities.

Recognize that economic growth is reflected by an outward shift in the PPF and understand factors contributing to such growth.

Understand why the PPF is typically bowed-out due to the varying adaptability of resources in the production of different goods.

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Definitions:

Margin

In finance, margin refers to the difference between the selling price and the cost of goods sold, often expressed as a percentage of the selling price. In trading, it refers to the collateral required to open and maintain a position.

Cost

The amount of money required to purchase something or the expense incurred to create a product or service.

Overhead Costs

Expenses related to the day-to-day running of a business that are not directly linked to the production of goods or services.

Operating Profit

The income generated from the main activities of a company, not including interest and tax expenses.