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3 years ago

Economic growth and public policy

Business

1 answer:

Ivan3 years ago

8 0

Answer:

a. Foreign Portfolio Investment

b. a. Provide tax breaks and patents for firms that pursue research and development in health and sciences.

d. Protect property rights and enforce contracts.

Explanation:

This is an example of Foreign Portfolio Investment (FPI). Foreign portfolio investment is when an entity from a foreign country invests in another country by buying the shares of a company in the local country. The American company bought shares in Argentina so the qualifies as FPI.

To increase productivity companies that are pursuing research should be given patents and tax breaks. The tax breaks will enable them have more money to reinvest into the research and the patent will provide incentive to them to continue the research knowing full well that they will be compensated by being the only ones to be able to use the technology invented for some time.

Also protecting property rights and enforcing contracts encourages investment in a country because people will be more trusting of making a return from business dealings. Higher investment leads to more productivity and growth.

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If a cost's step-cost behavior follows very narrow steps, the costs may be approximated using:

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Answer:

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3 years ago

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Answer:

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To dividend payable $192,500

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To dividends $192,500

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3 years ago