____ Is Not a Disadvantage of Direct Foreign Investment

question 46

Multiple Choice

____ is not a disadvantage of direct foreign investment.

• A) The expense of establishing a foreign subsidiary
• B) The uncertainty of inflation and exchange rate movements
• C) Political risk
• D) All of these are disadvantages of direct foreign investment.

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Definitions:

Value Rationality

A decision-making process focused on achieving a specific goal in a consistent, logical manner, irrespective of the personal utility gained.

Traditional Action

A term often associated with Max Weber, referring to actions motivated by established habits or customs rather than rational calculations or ethical considerations.

Means-ends Rationality

A concept in sociology that refers to people's actions being directed towards achieving specific goals by the most efficient means.

Affective Action

Actions driven by emotions and feelings rather than rational calculations.