Direct effects of FDI on employment in the host country arise when a foreign MNE:
A. brings in managers trained in the latest management techniques from the home country.
B. creates jobs because of increased local spending by employees of the MNE.
C. employs a number of host country citizens.
D. causes local suppliers to hire more people.
E. creates jobs in the supporting industries.
C
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Historical cost is the basis advocated for recording the acquisition of property, plant, and equipment for all of the following reasons except
a. at the date of acquisition, cost reflects fair market value. b. property, plant, and equipment items are always acquired at their original historical cost. c. historical cost involves actual trans¬actions and, as such, is the most reliable basis. d. gains and losses should not be anticipated but should be recognized when the asset is sold.
An exclusion affects a person's taxes by
A) reducing the amount of taxable income. B) increasing itemized deductions. C) decreasing itemized deductions. D) lowering a person's tax rate. E) increasing the number of exemptions a person can claim.