1)Foreign direct investments (FDI) are investments made by one company into another located in another country.

There are two types of foreign investments:-

1) Foreign portfolio investment- In this the investors invests in purchase of shares and other financial assests which does not gives complete ownership of the asset to the investor.

2) Foreign direct investment- In this the the investor purchases the assets which gives him the complete or direct ownership of the asset. It is thus distinguished from a foreign portfolio investment by a notion of direct control.

So direct in foreign direct investment means notion of direct control.

2)Ans: Point A, B, C, and D

Explanation:

A PPF represents all those combination of goods which can be produced when a nation's resources are optimally and efficiently utilized. Any point on the PPF and inside the PPF are attainable and any point outside the PPF is not attainable. From the graph it is seen that point A, B, C, and D and point E is not attainable since point E is outside the PPF. But the efficient points are A, B, and C.

Thus, option [B] is correct answer.

3)MNC stands for Multinational Corporation, that owns or contols production of goods and services in atleast one country other than its home country. Acompany is considered as an MNC if it engages in FDI.

The criteria of MNC does not depend on its being big or small.MNC are differiented on the basis of the following:-

Size – number of people that work for it,amount of revenue, market value of its assets etc

Industry or sector - what a company does

Country of origin – where it started, where its headquarters are

Geographic diversification – how much of the world they do business in or particular regions that they work in

Motivation – what motivates them to become multinationals

Subsidiary type

Type of owner

Comvita is a globally recognised company listed on NZX. it deals in  natural health products company, committed to the development of innovative products, backed by scientific research. Comvita has more than 500 staff in eight countries; New Zealand, Australia, Hong Kong, China, Japan, South Korea, the United Kingdom and the USA. This team is inspired by Comvita's founding principles every day; preserve the purity of source, share knowledge, replant and replenish. The company pioneered the development and use of medical grade Manuka honey and was the first to receive FDA approval in 2007. Thus prooving it is an MNC.

4)

The term FDI refers to "Foreign Direct Investment", under which an individual or a firm from a country, invests in another. It can be a new venture or an existing foreign owned business. However, according to IMF (International Monetary Fund), a foreign direct investment is where the investor purchases over a 10% stakes in the company.

There are basically 3 types of FDI's :-

1) Horizontal FDI

2) Vertical FDI

3) Conglomerate FDI

In the given scenario, the type of FDI undertaken by a French tyre manufacturer acquiring a South Korean competitor protected by high import tarrifs can be a "Horizontal FDI". As under this funds are invested abroad in the same industry producing same goods.

It is given that the South Korean company is the competitor of French tyre manufacturer. Thus, it is clear that both are in the same craft of manufacturing tyres. But as the South Korean tyre manufacturer enjoys the protection of "High Import Tariffs" (It usually reduces the imports of a given product because it leads to a higher price of the imported goods for the customers) it automatically makes it the key player in tyre manufacturing industry, while making other foreign manufacturers like the French tyre company's product costlier.

Subsequently, inorder to avoid this high tariff imposition and take over a part of the market, the French manufacturer tends to jump into a Horizontal  FDI with its very own competitor.

5)Amount withdrawn = $ 60000 per year for 12 years (starting 20 years from today)

1)

i = 10%

Amount to be invested (today) = PV = 60000/(1 + 10%)²⁰ + ..... + 60000/(1 + 10%) ³¹

Using the corresponding TVM interest factors:

Amount to be invested (today) = PV = $ 66846

2)

i = 15%

Amount to be invested (today) = PV = 60000/(1 + 15%)²⁰ + ..... + 60000/(1 + 15%) ³¹

Using the corresponding TVM interest factors:

Amount to be invested (today) = PV = $ 22853