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:

Check

A written order instructing a bank to pay a specified amount of money from the writer's account to the person or entity in whose name the check has been issued.

Certificate Of Deposit

A savings certificate with a fixed maturity date and specified fixed interest rate that is issued by a bank.

Note

A promise by the maker of the note to pay the payee of the note.

Bank

A financial institution licensed to receive deposits, offer loans, and provide various financial services to individuals and businesses.