A firm that engages in foreign direct investment (fdi) in other countries is called an international business.
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What is foreign direct investments?</u></h3>
- An entity based in another nation makes an investment in the form of controlling ownership in a company in another country. This investment is known as a foreign direct investment (FDI).
- Thus, the idea of direct control sets it apart from a foreign portfolio investment.
- The investment can be done "inorganically" by purchasing a company in the target country or "organically" by expanding the operations of an already-existing business in that nation.
- The origin of the investment has no bearing on whether it qualifies as an FDI.
In general, "mergers and acquisitions, building new facilities, reinvesting earnings obtained from overseas operations, and intra company loans" are considered to be foreign direct investments.
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Options :
A)net present value of the $25,000.
B)future value of the $25,000.
C)internal rate of the return on the $25,000.
D)present value of $25,000.
Answer: B)future value of the $25,000.
Explanation: The Smith's calculation and subsequent result which yielded $31,000 refers to the future value of $25,000. The initial $25000 is the present value of the amount held. If the initial amount is saved or deposited over a certain number of years in an account which yields a certain rate of interest per annum and is compounded either on a monthly, yearly, quarterly or semiannual basis as the case may be, in this scenario above, the interest is called mounded annually. This initial amount will grow and yield an amount which is greater than the present deposit. This is called the future value of the initial deposit.
This is a bad financial move for several reasons:
- He doesn't have the money to pay back the loan now, and will not magically get more money later (even if he gets paid soon he already has more rent and other expenses to pay)
- If it is a high-interest loan and he makes the minimum payment each month, the interest will continue to grow and it will get harder and harder to pay off
- A TV that you owe money on is a liability not an asset. Borrowing money to get a car that you use to drive to work and earn money is one thing, but borrowing money to but a TV that will never earn you money is not a wise decision.
Answer:
Hybrid ARMs
A hybrid ARM features an interest rate that is fixed for an initial period of time, then floats thereafter. The "hybrid" refers to the ARM's blend of fixed-rate and adjustable-rate characteristics.
Explanation:
<u>Answer:</u>
<em>Individuals, as a whole, spend less than they make. The excess is provided for financial institutions.
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<u>Explanation:</u>
In any market, the cost determines what providers get and what demanders pay. In money related markets, the individuals who supply monetary capital through sparing hope to get a pace of return, while the individuals who request budgetary capital by accepting assets hope to pay a speed of performance. This pace of recovery can arrive in an assortment of structures, contingent upon the kind of speculation.
Members in budgetary markets must choose when they want to devour merchandise: presently or later on. Financial experts call this essential intertemporal leadership since it includes choices crosswise over time.
