A firm's direct investment in international business involves building a new plant or buying an existing plant in a foreign country to produce its own products, or it may involve buying an existing firm in a foreign country-This statement is true
Explanation:
A <u>foreign direct investment (FDI)</u> can be defined as a company of one nation putting up a physical investment into building a facility (factory) in another country or involves buying an existing Plant in a foreign country.
<u>Examples of foreign direct investments </u>include mergers and acquisitions,
<u>Strategically, FDI can be categorized into three types</u> −
<u>Horizontal</u> − In case of horizontal FDI, the company carries or perform all the same activities abroad as it does at the home country.
<u>For example:</u>- Toyota assembles motor cars in Japan ,India and the UK.
<u>Vertical</u> − In vertical assignments, different types of activities are carried out abroad.
<u>Conglomerate</u> − In this type of investment, the investment is made to acquire an unrelated business abroad. It symbolizes the entry of the company into an altogether different business line.
The amount of the total fixed cost is $26,280.
Given,
Production level - 5,600 units
Total cost - $89,000
Variable cost - $11.20
Total fixed cost - ?
So in order to find the total fixed cost a formula is used,
Total fixed cost = Total costs - Total variable cost × Production units
= $89,000 - ($11.20 × 5,600)
= $26,280
Hence, the total fixed cost is $26,280.
Total fixed cost is the total amount of money a business must pay in order to keep their operations running regardless of how many products they make or sell. Fixed costs are those which exist even when production is at zero.
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Answer: $351,000
Explanation:
Given that,
Cost of inventory = $350,000
Selling price = $675,000
Beginning balance of inventory = $86,000
Beginning balance of accounts payable = $116,000
ending balance of inventory = $94,000
ending balance of accounts payable = $123,000
Cash paid to suppliers:
= Cost of Goods Sold + Change in inventory - Change in accounts payable
= 350,000 + (94,000-86,000) - (123,000-116,000)
= 350,000 + 8,000 - 7,000
= $351,000
Answer:
The description of the given question is explained below in the explanation portion.
Explanation:
Risk 1: <u>New customer</u>
- Our advantage comes from developing strong client relationships, that also typically lead to other initiatives with this client.
Risk 2: <u>Poor cost estimate</u>
- It's always research linked towards the building of educational business process, therefore a complicated project consisting of several components including students, instructional personnel, and clients.
Risk 3: <u>Difficult to maintain</u>
- Throughout the long term, disproportionately numerous people will be able to use that same technology in some of these circumstances.