Which of the Following Statements Is True of Foreign Direct

question 51

Multiple Choice

Which of the following statements is true of foreign direct investment?

• A) The multinational either creates a wholly or partially owned and controlled foreign subsidiary in the host country.
• B) It involves permitting a licensee of a trademark to market the licensor's goods or services in a particular nation.
• C) It is less risky than international trade and international franchising and licensing.
• D) The capital invested is not subject to government restrictions and domestic law of the host country.

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Definitions:

George Herbert Mead

An American sociologist who is known for his work on the development of the self and the theory of social behaviorism.

Repress Trauma

The unconscious process of blocking the emotional and physical responses associated with a traumatic event from one's awareness.

Personal Conscience

Refers to the inner sense of what is right or wrong in one's conduct or motives, impelling one towards right action.

Freudian Theory

Sigmund Freud's psychoanalytic theory which emphasizes unconscious desires, childhood experiences, and the structure of personality (id, ego, superego).