Which of the Following Best Describes the Direct Investment Global

question 3

Multiple Choice

Which of the following best describes the direct investment global entry strategy?

• A) With direct investment, a firm maintains total ownership of its plants, operation facilities, and offices in a foreign country.
• B) Direct investment occurs when a firm enters a new market by pooling its resources with those of a local firm to form a new company in which ownership, control, and profits are shared.
• C) Direct investment refers to depositing payroll funds in a foreign bank.
• D) Direct investment designates the maximum quantity of a product that may be brought into a country during a specified time period.
• E) Direct investment occurs when a producer sells its offering in a foreign market at a price less than its production cost.

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Definitions:

Strategic Plans

Long-term planning documents that articulate an organization's goals, strategies for achieving those goals, and measures for assessing progress.

Operational Plan

A detailed outline of how a strategy will be implemented in terms of resources and actions needed to achieve specific objectives.

System Capacity

The maximum output or performance level that a system can handle, which can refer to organizations, networks, or technical systems.

Nonprofit's System

A nonprofit's system comprises the organizational structures, processes, and practices that enable a nonprofit organization to pursue its mission effectively.