When a Foreign Company Engages in Riskier Behavior After It

question 21

Multiple Choice

When a foreign company engages in riskier behavior after it has received international investment funds, it is known as

• A) portfolio investment.
• B) moral hazard.
• C) foreign direct investment.
• D) adverse selection.

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Definitions:

Pilot Experiment

An initial small-scale study conducted to test the feasibility, time, cost, risk, and adverse outcomes of a research project.

Large-Scale Study

A research project or experiment that involves a large number of participants or data points, providing more generalizable results.

Feasibility

The measure of how possible or viable it is to achieve a goal or complete a project, often evaluated in terms of resources, time, and technology.

Successful Entrepreneurs

Individuals who have achieved significant success in creating and managing ventures that bring innovative products or services to market.