Examlex
Describe in detail any three management issues involved in foreign direct investment decisions.
Economies of Scale
The reduction in per-unit production costs that occurs when companies grow their scale of operation, demonstrating how larger operation capacity can lead to cost efficiencies.
Price Ceiling
A government-imposed limit on the price charged for a product, intended to prevent prices from rising to levels that are deemed unaffordable or exploitative.
Fair Rate of Return
An acceptable profit level for an investor or entrepreneur, typically established by regulatory agencies for monopolies or utilities.
Average Fixed Cost
The total fixed costs of production divided by the quantity of output produced, illustrating how fixed costs spread over units decrease with increased production.
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