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3 years ago

How does increased competition through FDI in the form of greenfield investments affect the host country

Business

1 answer:

Kisachek [45]3 years ago

4 0

Answer: It drives down prices and increases the economic welfare of consumers.

Explanation:

Greenfield investment is a form of Foreign Direct Investment where the investors build a facility/ies in the host nation from scratch as opposed to buying or leasing one.

With increased competition from greenfield investments, consumers would be better off because there will be more quantity of the relevant good available in the market. This will lead to the prices falling and consumers being able to afford more of the good at higher qualities.

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Michael Anderson is starting a computer programming business and has deposited an initial investment of $15,000 into the busines

Darina [25.2K]

Answer:

a.increase in assets (Cash) and increase in owner's equity (Michael Anderson, Capital)

Explanation:

we solve this using the accounting equation

Assets = Liabilities + Equity

The cash would represent currency own by the company. That is the definition of assets. Something own by the company that either is cash or can be converted into cash in the future or help to provide an inflow of cash.

Now, as Asset increase by 15,000 the other side must also increase.

The company has no liability against the owner Thus this will be an equity account Which precisely, it represent the capital of the owners.

5 0

3 years ago

During _____ processes for a new project, the organization recognizes that a new project exists, and completes a project charter

never [62]

Answer: (D) Initiating

Explanation:

The Initiating processes is one of the phase in the project management life cycle that is necessary for defining the existing project's main objective, success criteria and also the outcome.

The initiating processes helps in providing the effective information or data that is necessary for the developing the project. It is also refers top the process for obtaining the authorization for the given project.

According to the given question, the initiating processes recognizing all the existing projects and also complete all the project charter as part of recognition process.

Therefore, Option (D) is correct answer.

5 0

3 years ago

Trendsetters has a cost of equity of 14.6 percent. The market risk premium is 8.4 percent and the risk-free rate is 3.9 percent.

Karolina [17]

Answer:

The answer is option ( C.) Increase of 1.06 percent

Explanation:

Data provided in the question:

Cost of equity = 14.6%

Market risk premium = 8.4%

Risk-free rate = 3.9%

Company's beta = 1.4

Now,

Expected Return = Risk-free rate + ( Beta × Market risk premium )

= 3.9% + ( 1.4 × 8.4% )

= 3.9% + 11.76%

= 15.66%

Therefore,

The change in firm's cost of equity capital = 15.66% - 14.6%

= 1.06%

Hence,

The answer is option ( C.) Increase of 1.06 percent

5 0

3 years ago

A turnkey project includes Multiple Choice government investment. construction up to but not including actual production. direct

Tema [17]

A turnkey project includes construction up to but not including actual production. Option B. This is further explained below.

<h3>What is construction?</h3>

Generally, construction is simply defined as the process of erecting a building.

In conclusion, The building process, but not the manufacturing itself, is included in a turnkey project.