All categories

2 years ago

This international business strategy is generally the most expensive commitment that a firm can make to an overseas market

1 answer:

8 0

Foreign Direct Investment is the international business strategy is generally the most expensive commitment.

<h3>What is Foreign Direct Investment?</h3>

Foreign Direct Investment is the investment of the one company investment to another country. Mostly this type of business is done by the business person to expand their business in multiple countries and establish their portfilio.

Thus, option D is correct.

For more details about Foreign Direct Investment, click here:

brainly.com/question/17309021

#SPJ1

You might be interested in

If the structural budget deficit is $100 billion and the actual deficit is $300 billion, what is the size of the cyclical defici

IceJOKER [234]

Cyclical deficit is the downfall of the business cycle, this usually occurs when the economy is beneath potential income. The formula for this is, CD= tax rate x ( potential deficit - actual deficit). Therefore, the cyclical deficit is $200. I hope this helps.

7 0

3 years ago

What will happen to the firms equilibrium wage rate when the supply of labour decrease from 25 to 15? Explain with the help of d

Tpy6a [65]

Answer:

Wage rate = $960

Explanation:

Supply of labor is the number of hours workers are willing to work at a given real wage rate. When wage rate increases, supply of labor also increases because more people are encouraged as now they can obtain a higher income. When wage rate decreases, labor supply also decreases.

<em><u>View diagram</u></em>

In this case, however, there has been a decrease in supply, causing the supply curve to shift from S to S1. This can be due to many reasons such as migration, increase in minimum working age or increase in interest in education causing more people to study. When the supply of labor falls, there are less people available for work. Thus, demand exceeds supply, causing a shortage. Hence, the pressure causes price, i.e. wage rate to increase. To determine by how much the increase is, cross-multiplication can be used:

At 25 laborers, wage rate is $600 (25 = 600)

At 15 workers, wage rate is X (15 = X)

We now substitute for X, which is the amount by which wage rate will increase.

25 / 600 = 15 / X

Thus, 25X = 9000 (600 x 15)

9000 / 25 = X

X = 360.

Hence, wage rate at 15 laborers is 600 + 360 = $960

3 0

3 years ago

A firm is considering expanding its current operations and has estimated the internal rate of return on that expansion to be 12.

andrew-mc [135]

Answer:

expansion should be undertaken as it has a positive net present value

7 0

3 years ago

Which of the following statements is correct with respect to economic incentives to release financial information?

makvit [3.9K]

Answer:

Explanation:

If investors do not have adequate information about the company they are investing, they would demand an higher rate of return. This would increase the cost of raising capital. So, financial managers who want to raise capital at a cheap rate would have the incentive to disclose information

8 0

3 years ago

Tatsuo has just been awarded a four-year scholarship to attend the university of his choice. The scholarship will pay $9,000 eac

a_sh-v [17]

Answer:

Value of scholarship today = $30,484.90

Explanation:

The value of the Scholarship is the present value of the annual payment of $9,000 discounted as the annual interest rate of 7% per annum.

This can be computed using the formula below

Present Value = Annual cash flow × (1- (1+r)^(-n)/r)

n -number of years, r-interest rate

rate r- 7%, n=4, Annual cash flow = 9,000

Present Value = 9,000× (1-1.07^-4)/0.07

= 9,000× 3.3872

= $30,484.90

Value of scholarship today = $30,484.90

4 0

3 years ago