The Main Disadvantage of Direct Investment Is That the Firm

question 46

True/False

The main disadvantage of direct investment is that the firm loses access to the market in case the government of that country insists locally purchased goods have domestic content.

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Definitions:

Long-term Implications

The lasting effects or consequences of an action or condition over an extended period.

Better-than-average Effect

The cognitive bias where individuals overestimate their own qualities and abilities in relation to others.

Real-world Example

An actual, tangible instance or situation that illustrates or clarifies a concept, theory, or phenomenon.

Humanistic Approach

A psychological perspective emphasizing personal growth, self-awareness, and the inherent potential for self-fulfillment.