AOL Incurred Above Anticipated Costs When They Started Their Business

question 49

Multiple Choice

AOL incurred above anticipated costs when they started their business in to South America. This is an example of _____.

• A) Vertical FDI
• B) Horizontal FDI
• C) Liability of Foreignness
• D) Liability of FDI

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Definitions:

Centralization

The degree to which the authority to make decisions is restricted to higher levels of management.

Higher Levels

Refers to the more advanced or senior ranks and responsibilities in an organizational hierarchy or in the context of thinking, it refers to more complex and abstract thought processes.

Policies, Rules

Established guidelines and instructions that dictate the expected conduct and procedures within an organization or society.

Direct Supervision

The act of overseeing employees' work directly, often with the supervisor physically present or in close proximity.