Which of the Following Is True About Direct Investment as a Mode

question 4

Multiple Choice

Which of the following is true about direct investment as a mode of international expansion?

• A) It allows a firm to retain full control over its investment.
• B) It yields the lower returns than joint ventures.
• C) It involves the least amount of risk.
• D) It involves the least cost.
• E) It does not allow the firm to diversify.

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Definitions:

Conditioned Stimulus

In classical conditioning, a previously neutral stimulus that, after being associated with an unconditioned stimulus, comes to elicit a conditioned response.

Snake Phobia

An intense, irrational fear of snakes, which can cause emotional and physical reactions even in the absence of real danger.

Classical Conditioning

The act of learning through establishing a relationship between a stimulus that is environmentally based and another that occurs spontaneously in nature.

Environmental Cues

External triggers or signals that can influence behavior and perception without conscious awareness.