Discuss the two different methods the Bureau of Economic Analysis (BEA) uses to place current values on foreign direct investments
What will be an ideal response?
The current cost method values direct investments at the cost of buying them today. The market value method is meant to measure the price at which the investments could be sold. These two methods can lead to different valuations because the cost of replacing a particular direct investment and the price it would command if sold on the market may be hard to measure.
You might also like to view...
If enforcement is aimed at buyers of an illegal good, the result will be
A) an increase in the short-run supply of the good. B) a decrease in the short-run supply of the good. C) a decrease in demand for the good. D) an increase in the price of the good.
Which of the following would be most likely to cause a reduction in the supply of Nintendo video games?
a. a decrease in the price of Nintendo video games b. a decrease in the price of computer chips used to make Nintendo games c. an increase in the demand for Nintendo video games d. an increase in the price of computer chips used to make Nintendo games