Which of the Following Is NOT a Reason for Firms

question 6

Multiple Choice

Which of the following is NOT a reason for firms in an
Industrial nation to undertake vertical FDI in a low­income
Nation?

• A)access to raw materials
• B)lower wages
• C)avoidance of export taxes
• D)access to raw materials, lower wages, avoidance of export taxes

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Definitions:

Credit Card Sales

Credit card sales refer to transactions in which goods or services are purchased by customers using credit cards as the method of payment.

Cash Equivalents

Short-term, highly liquid investments with original maturities of three months or less, easily convertible into a known amount of cash.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for financing inventory and accounts receivable.

Accounts Receivable

Represents the money owed to a company by its customers for goods or services that have been delivered but not yet paid for.