Direct Foreign Investment Would Typically Be Welcomed If

question 39

Multiple Choice

Direct foreign investment would typically be welcomed if:

• A) the products to be produced are substitutes for other locally produced products.
• B) people from the country of the company's headquarters are transferred to the foreign country to work at the subsidiary.
• C) the products to be produced are going to be exported.
• D) All of these are correct.

---

Definitions:

Oligopolization

The process by which a market or industry comes to be dominated by a small number of firms, leading to reduced competition.

Herfindahl-Hirschman Index

A benchmark for gauging how concentrated a market is to identify the level of competitive forces within a sector.

Automobile Industry

The automobile industry encompasses a wide range of companies and organizations involved in the design, manufacturing, and marketing of motor vehicles, including cars, trucks, and motorcycles.

Cigarette Industry

Refers to the global sector involved in the manufacturing, marketing, and sale of cigarettes and related products.