The Decision to Establish Foreign Manufacturing Operations Through Direct Investment

question 5

Multiple Choice

The decision to establish foreign manufacturing operations through direct investment or licensing depends on

• A) the extent to which capital is used in the production process.
• B) the size of the foreign market.
• C) the amount of fixed cost a firm must bear when establishing an overseas facility.
• D) All of these are correct.

---

Definitions:

Lesbian

A woman who is emotionally, romantically, and/or sexually attracted to other women.

United States

A country in North America consisting of 50 states, known for its significant influence on world politics, culture, and economy.

Adolescence

Adolescence is the transitional stage of physical and psychological development that generally occurs during the period from puberty to legal adulthood.

Power

The ability or capacity to influence the behavior of others or the course of events.