Which of the Following Is True of Offshoring

question 43

Multiple Choice

Which of the following is true of offshoring?

• A) It refers to the return of jobs that are sent overseas.
• B) It refers to the seizure of a firm's assets in a foreign country by the national government.
• C) It inhibits diversification of business risks.
• D) It typically reduces a firm's costs of doing businesses.
• E) It refers to the potential for a company's operations in a country to struggle due to differences in language and customer preferences.

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Definitions:

Investors Prefer

Refers to investors' tendencies to favour certain assets, securities, or investment strategies based on risk, return, and personal preferences.

Expected Return

The predicted amount of profit or loss an investment generates based on historical performance or analyst forecasts.

Risk-Free Rate

The theoretical rate of return of an investment with zero risk, often represented by the yield of government securities.

Market Risk

The possibility of an investor experiencing losses due to factors that affect the overall performance of the financial markets.