Even though the nation faces political instability, the island of frollik with its wide, expansive beaches is a destination hub for cruise lines. recently, a large theme park company showed strong interest in buying land in frollik with the intent of building a park targeted toward families. the company wants to make a commitment to frollik, including the hiring of several hundred local employees. they’re using a global marketing strategy called

The correct answer is foreign direct investment.

Explanation:

Foreign Direct Investment (FDI) consists of the capital investment by a natural person or a legal entity (institutions and public companies, private companies, etc.) in a foreign country. In the country of destination, this capital inflow can be made through the creation of new production plants or the participation in companies already established to form a subsidiary of the investment company. According to the OECD, FDI aims to exercise long-term control over the acquired or investee company, and the criteria established to define it is that the property acquired by the parent company be at least 10% of the subsidiary.

the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

now clearing the formula to solve for capital we got:

and we reach the answer investment = $14,174.20