A Firm Is Most Likely to Favor Foreign Direct Investment

question 108

Multiple Choice

A firm is most likely to favor foreign direct investment over exporting when

• A) the firm wants its technological know-how to be widely disseminated.
• B) the firm wishes to maintain control over its operations and business strategy.
• C) the transportation costs are low.
• D) there are no trade barriers.
• E) the firm wants to customize its products as per the tastes and preferences of foreign consumers.

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Definitions:

Direct Order Plan

A method of organizing written communication where the main point or conclusion is stated first, followed by supporting details or evidence.

Human Resources

The department within an organization that focuses on employee recruitment, management, and providing direction for the people who work in the organization.

Analyze Audience

The evaluation of an audience to determine their characteristics, needs, and expectations, in order to tailor communication effectively.

Revision Stage

The phase in the writing process where content is reviewed and altered to improve clarity, coherence, and effectiveness.