When a Company from Germany Builds an Automobile Factory in the United

question 141

True/False

When a company from Germany builds an automobile factory in the United States, the German firm has engaged in foreign direct investment.

---

Definitions:

Direct Labor Cost

Direct labor cost refers to the expense associated with employees who are directly involved in the production of goods or services, such as wages for assembly line workers.

Cell Phone Manufacturer

A company that designs, produces, and sells mobile phones and related accessories.

Direct Materials Cost

The expense incurred for raw materials that are directly involved in the manufacturing process of a product.

Automobile Manufacturer

A company engaged in the design, production, marketing, and sales of motor vehicles.