By Itself, If a U

question 1

True/False

By itself, if a U.S. firm builds a new factory overseas, U.S. net capital outflow rises.

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Definitions:

Resource Structure

The composition and allocation of resources within an organization or economy, including human, financial, and material resources.

Financial Structure

The mix of debt and equity that a company uses to finance its operations and growth.

Stockholders' Equity

Stockholders' equity represents the residual interest in the assets of an entity after deducting liabilities, essentially the net worth attributable to shareholders.

Accumulated Other Comprehensive Income

This is a component of shareholders' equity apart from retained earnings that includes items such as foreign currency translation adjustments and unrealized gains on securities.