The Net Amount of Investment by Nonresidents in Enterprises in Which

question 1

Multiple Choice

The net amount of investment by nonresidents in enterprises in which nonresidents exercise significant management control is knows as:

• A) Foreign straight share
• B) Foreign straight investment
• C) Foreign direct share
• D) Foreign direct investment

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Definitions:

Market Price

The current price at which a good or service can be bought or sold on the open market, determined by supply and demand forces.

Profit-Maximizing Firm

A company that operates with the objective of making the highest possible profit.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the benefits one misses out on.

Accounting Profits

The total revenue of a company minus the explicit costs, not including opportunity costs, showing the financial performance.