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:

Tend-And-Befriend Theory

A stress response theory proposing that, under stress, individuals (particularly women) are predisposed to nurturing activities and seeking social support.

Needs For Affiliation

The psychological desire to belong to or be associated with groups or to have positive relationships with others.

Intimacy

A close, familiar, and usually affectionate or loving personal relationship with another person or group.

Power

is the ability or capacity to influence or control the behavior of others or the course of events.