<u>B) </u><u>Foreign portfolio investment. </u>
<h3><u>Foreign Portfolio Investment (FPI) – what is it?</u></h3>
A foreign portfolio investment (FPI) entails the acquisition of overseas financial assets by the investor. Foreign securities are typically traded on formal, established securities exchanges or through over-the-counter market transactions. As a method of portfolio diversification, investing abroad is getting more and more popular. FPIs frequently consist of passively held securities and alternative foreign financial assets held by foreign investors.
<h3><u>What aspects of overseas portfolio investment are there?</u></h3>
- Chances for economic growth.
- Sovereign danger.
- Rate of interest.
- Rates of tax.
- Change in value.
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Pressure groups, or a lobby.
Answer:
I got B. secure access to natural resources.
Explanation:
The supply of loanable funds would increase and interest rates would fall.
For instance, they may lower or do away with taxes on savings interest. More people would be motivated to cut back on their present levels of consumption and increase their savings as a result of the enhanced tax benefits associated with saving.
This will result in a rise in the amount of loanable money available (shift to the right.) The interest rate at equilibrium will decrease. People and businesses will have more motivation to borrow as the interest rate declines, pushing up the demand curve and increasing the equilibrium amount of borrowing and lending in the market.
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Answer: 1) CM / Sales = CM Ratio
CM = 306,000 - 238,680 = 67,320
CM Ratio = 67,320 / 306,000 = 0.22
2) CM Ratio x 2,500 = 550
Explanation:
