Imagine That a U

question 68

Multiple Choice

Imagine that a U.S.firm issues a press release regarding its intentions to acquire a foreign firm, a competitor.This competitor is located in a country with cheaper raw materials, more productive labor, and lower corporate tax rates.Which of the following factors is consistent with a demand motive for foreign direct investment?

• A) The foreign firm is a competitor.
• B) There are cheaper raw materials.
• C) There is more productive labor.
• D) None of these are correct.

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City Field

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