When the Commercial Risk of Investing in a Foreign Country

question 77

True/False

When the commercial risk of investing in a foreign country is high, firms would prefer investing directly than selling franchises.

---

Definitions:

MMC Basis

Maximum Material Condition, a condition of a part where it contains the maximum amount of material within its tolerance limits, important for specifying geometric tolerances.

Circularity

A geometric tolerance that limits the deviation of a feature's shape from a true circle, ensuring roundness.

Straightness

The condition of being free from curves, bends, or angles; linear alignment without deviation.

Cylindricity

A measure of how much an object's geometry deviates from a perfect cylinder, considering the roundness and straightness along its axis.