Why Are R&D Costs Important to Assess When Considering FDI

question 13

Essay

Why are R&D costs important to assess when considering FDI? Even given its costs,how can FDI benefit the host country with access to technology,management skills,and employment?

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Definitions:

Variable Costs

Costs that vary directly with the level of production or output.

Fixed Costs

Expenses that do not change with the level of goods or services produced over a short period.

Space Rental

The act of obtaining the use of a physical location or property for a specified period of time in exchange for payment.

Raw Material Cost

The expenditure incurred for the raw ingredients or basic materials that are converted through manufacturing processes into goods or services.