Foreign Saving Is Used for Domestic Investment When Foreigners Engage

question 5

Multiple Choice

Foreign saving is used for domestic investment when foreigners engage in

• A)foreign direct investment.
• B)foreign portfolio investment.
• C)either foreign direct investment or foreign portfolio investment.
• D)None of the above is correct.

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Definitions:

Investment Centers

Sections of a company treated as separate business units, responsible for their profit and investment.

Controllable Margin

The portion of profit or margin that can be directly influenced by management's actions by controlling certain costs or revenues.

Average Operating Assets

The average value of the assets used in the core operations of a business over a period, important for evaluating investment efficiency.

Controllable Fixed Costs

Fixed costs that management has the ability to influence or change over the short term, such as advertising expenses.