The Purchase of Physical Assets or a Significant Amount of Ownership

question 67

Multiple Choice

The purchase of physical assets or a significant amount of ownership (stock) of a company in another country to gain a measure of management control is called ________.

• A) foreign direct investment
• B) portfolio investment
• C) mergers
• D) vertical integration

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Definitions:

Future Demand

Anticipated customer need or desire for products or services in the future, guiding production and marketing strategies.

Forecasting Demand

The process of estimating the future demand for products or services based on historical data, trends, and analysis of market conditions.

Value To The Customer

The perceived benefit or satisfaction a customer receives from a product or service, compared to the cost of obtaining it.

Market

Refers to the area or arena in which commercial dealings are conducted, whether physical or virtual, involving the exchange of goods or services.