Answer:
(D) - It engages in Foreign Direct Investment, which by itself raises US net capital outflow
Explanation:
Foreign Direct Investments (FDIs) are investments in physical assets, infrastructures, etc and other long-term assets made in a foreign country. They differ from Foreign Portfolio Investments (FPIs) which are investments in stocks, bonds, treasury securities and other listed securities which can be sold easily in financial markets. For instance, when a US-based corporation invests in the stocks or bonds of a French company, this is FPI. Whereas, when the US-based corporation establishes a company in France by investing as plants and machinery, this is FDI.
FDIs requires cash commitment for investing in the foreign nation. However, because the assets created as a result of these investments are owned by the originating country, it increases the volume of assets the country has abroad leading to an increase in net capital outflow. Net Capital Outflow is the volume of capital investment made by a nation in other countries, less the capital investment made by other countries into the nation.
Therefore, when Stryker builds and operate a new factory in France, it engages in Foreign Direct Investment. By itself this action raises US net capital outflow.
The answer to this question is "GAIN: $2,000". Hence when a United States<span> firm sells merchandise today to a British company for £100,000. the current exchange rate is $2.03/£, the account is payable in three months, and the firm chooses to avoid any hedging techniques designed to reduce or eliminate the risk of changes in the exchange rate. if the exchange rate changes to $2.01/£ United States firm will realize a GAIN of $2,000.</span>
I think it is B).$34,000 because they are net sales meaning they are after taxes and they wouldnt be getting the clean $38,000 so i that is why i think it is B
Answer:
c. Optimum replacement interval (ORI)
Explanation:
Optimum replacement interval used to estimate the most cost effective time to replace an asset on the basis of their replacement cost.
There needs to be a balance between the replacement cost and the value that is being lost by changing the asset.
The useful value must be low to justify replacement cost.
For example if the cost of maintaining a machine has increased a lot as a result of wear and tear, it will be more cost effective to make a replacement in order to minimise cost and increase efficiency
