"Offshoring" Is Technically Different from "Outsourcing" Because

question 105

Multiple Choice

"Offshoring" is technically different from "outsourcing" because:

• A) the former is FDI that establishes a subsidiary in a foreign country.
• B) the latter is FDI that establishes a subsidiary in a foreign country.
• C) the former involves hiring firms to produce a product without investing in the foreign country.
• D) the latter is sanctioned by the government.

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Definitions:

Quarterly Dividend

A dividend paid by a company to its shareholders every quarter, representing a portion of the company's earnings.

Capital Gains

The profit earned from the sale of an asset or investment which has increased in value over the holding period.

Shares

Units of ownership in a company or financial asset that represent a portion of the total capital.

Dividend Yield

A company's yearly dividend disbursement compared to its stock price, shown as a financial ratio.