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katen-ka-za [31]
4 years ago
11

4.What are the costs of foreign direct investment from a host country perspective?

Business
1 answer:
nataly862011 [7]4 years ago
7 0

one of the costs is that it could lower the comparative advantage of the nation.

another cost is foreign investors selling unprofitable portions of the company to lower investors. they use the company's security to get lower cost and closer loans.

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Answer:

The correct answer is $1,800,000.

Explanation:

According to the scenario, the computation of the given data are as follows:

Net working Capital = Current Assets - Current Liabilities

Where,

Current Assets = cash and marketable securities + accounts receivable + inventory

Current Assets = $400,000 + $1,200,000 + $2,100,000 = $3,700,000

And Current Liabilities = accrued wages and taxes + accounts payable + notes payable

Current Liabilities  = $500,000 + $800,000 + $600,000 = $1,900,000

So, Net Working Capital = $3,700,000 - $1,900,000

= $1,800,000

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3 years ago
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