US- Based Dell Sells Computers to an Irish Company That

question 48

Multiple Choice

U.S- based Dell sells computers to an Irish company that pays with previously obtained U.S.currency.This exchange

• A)increases U.S.net capital outflow because the U.S.acquires foreign-owned assets.
• B)decreases U.S.net capital outflow because the U.S.acquires foreign-owned assets.
• C)increases U.S.net capital outflow because the U.S.sells capital goods.
• D)decreases U.S.net capital outflow because the U.S.sells capital goods.

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Definitions:

Emerging Companies

Businesses in the early stages of development that have high growth potential but also face higher risks and uncertainties.

Bad News Earnings

Reports of lower than expected earnings, often leading to a negative reaction in the stock market and a decrease in company’s share price.

Negative Earnings Surprise

An event where a company's reported earnings are below the expectations of analysts, often leading to a decline in its stock price.

Stock Returns

The income generated from the investment in shares, comprised of dividends received and capital gains or losses.