Which of the Following Statements Is True of Foreign Direct

question 51

Multiple Choice

Which of the following statements is true of foreign direct investment?

• A) The multinational either creates a wholly or partially owned and controlled foreign subsidiary in the host country.
• B) It involves permitting a licensee of a trademark to market the licensor's goods or services in a particular nation.
• C) It is less risky than international trade and international franchising and licensing.
• D) The capital invested is not subject to government restrictions and domestic law of the host country.

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Definitions:

Corporate City

A city significantly influenced by or structured around the presence and interests of large corporations, often with implications for urban planning and governance.

Capital Accumulation

The growth of wealth or assets by a company or individual, often used to describe the increase in capital goods necessary to improve production.

Thomas Robert Malthus

An English cleric and scholar, known for his theories on population growth and its implications for society.

Population Control

Measures or policies implemented to control or regulate the growth rate of a population to ensure sustainability.