What Is an Advantage of Foreign Direct Investment from the Host

question 42

Multiple Choice

What is an advantage of foreign direct investment from the host country's perspective?

• A)Evasion of tariff barriers.
• B)Competition that will reduce the profits of domestic producers.
• C)Managerial expertise.
• D)Fewer strings attached than with portfolio investment.
• E)Loss of control over natural resource exploration.

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Definitions:

Cumulative Lead Time

The sum of all lead times involved in the process of completing a product, from raw material acquisition to finished good.

Assembly

The process of putting together components or parts to form a finished product.

Low Level Coding

denotes programming close to the machine level, often in assembly language or C, allowing for greater control over hardware and efficient use of resources but requiring detailed knowledge of the hardware.