Foreign Direct Investment Tends to Be Inexpensive, but It Gives

question 53

True/False

Foreign direct investment tends to be inexpensive, but it gives companies very little control of business operations in a foreign country.

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Definitions:

Agency Relationship

A legal arrangement where one party (the agent) is authorized to act on behalf of another (the principal) in business or legal matters.

Represents

To act on behalf of someone or something, often in a legal or official capacity.

Independent Contractor

An individual who provides services to another entity under a contract for services, retaining control over how the services are performed.

Specific Undertaking

A precise commitment or obligation that a party agrees to carry out.