Which of the Following Statements Holds True for Transnational Investment

question 6

Multiple Choice

Which of the following statements holds true for transnational investment?

• A)It refers to the process of financing major projects such as plant expansion in different countries, entry into new countries, or research and development in new countries by taking loans from banks in the home country.
• B)It refers to investing capital in foreign markets.
• C)It refers to the organized trading of securities through exchanges.
• D)It refers to seeking capital from foreign sources.
• E)It refers to a technique that companies use to reduce the costs of cross-border payments between subsidiaries.

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Definitions:

Agent

An individual or organization empowered to represent another party (known as the principal) in transactions with third parties.

Principal

The original sum of money borrowed in a loan, or the amount of the investment before earnings or losses.

Law

A system of rules created and enforced through social or governmental institutions to regulate behavior and ensure justice and order in society.

Independent Contractors

Workers who provide services to a business under terms specified in a contract or agreement, without being considered employees of the business.