MNCs Commonly Consider Direct Foreign Investment Because It Can Improve

question 19

True/False

MNCs commonly consider direct foreign investment because it can improve their profitability and enhance shareholder wealth.

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Definitions:

Sales Stability

The consistency and predictability of a company's sales over time, important for long-term planning and strategy.

Bankruptcy Costs

Expenses and losses associated with going through bankruptcy, including legal fees, the loss of business reputation, and potential asset liquidation.

Corporate Tax Rate

The percentage of a corporation's profits taken as tax by the government.

Strategic Goal

A strategic goal is a long-term, overarching target that an organization aims to achieve, guiding decision-making and resource allocation.