Foreign Direct Investment Occurs When

question 109

Multiple Choice

Foreign direct investment occurs when:

• A) a firm runs part of its operation abroad or invests in a foreign company.
• B) investors buy foreign financial assets like stocks, bonds, or government securities.
• C) foreign sources purchase domestic government debt.
• D) a foreign government directly invests in a firm.

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Definitions:

Cultural Dimensions

Frameworks for understanding the differences in culture across societies, often used in the field of cross-cultural communication.

Hofstede

A cultural dimensions theory proposed by Geert Hofstede, which analyzes cultural differences through five primary dimensions: power distance, individualism versus collectivism, masculinity versus femininity, uncertainty avoidance, and long-term orientation.

High-power-distance Cultures

Societal or organizational cultures that tolerate a larger degree of inequality in the distribution of power and authority.

Monochronic Cultures

Cultures that value doing one task at a time, emphasizing schedules, punctuality, and a linear approach to organizing time.