Which of the Following Is True About Direct Investment as a Mode

question 4

Multiple Choice

Which of the following is true about direct investment as a mode of international expansion?

• A) It allows a firm to retain full control over its investment.
• B) It yields the lower returns than joint ventures.
• C) It involves the least amount of risk.
• D) It involves the least cost.
• E) It does not allow the firm to diversify.

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Definitions:

Temporal Lobes

Regions of the brain located on either side of the head above the ears, involved in processing auditory information and encoding memory.

Occipital Lobes

The portion of the cerebral cortex lying at the back of the head; includes areas that receive information from the visual fields.

Association Areas

Areas of the cerebral cortex that are not involved in primary motor or sensory functions; rather, they are involved in higher mental functions such as learning, remembering, thinking, and speaking.

Reticular Formation

A nerve network that travels through the brainstem into the thalamus and plays an important role in controlling arousal.