Chapter 20, Problem 23AA

To determine

To explain: The reason for an American company purchased by a foreign company will be run similarly like other American companies.

Explanation of Solution

When a foreign company buys an American company, that company is run similar to other American companies. This is because the company is based in America and any purchase done by foreign company is only acquiring of ownership in the company. The company will continue to run as per the Federal policies.

Economics Concept Introduction

Introduction:

Foreign ownership of debt- Foreign investors and corporations own almost 50% of the government securities. This is done by foreign investors to gain more profits. However, foreign corporations have to consider the government policies as they own half of the debt.