What Is the Advantage of Foreign Direct Investment

question 30

Multiple Choice

What is the advantage of foreign direct investment?

• A) Helps in retaining advantage over competition
• B) Reduces transportation costs
• C) Creates a company tailored to a foreign market's unique characteristics
• D) All of the above

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Definitions:

Optimal Decision

The most efficient, profitable, or desirable decision given the available information, resources, and constraints.

Entree

The main dish of a meal.

Willingness-to-pay

The maximum amount an individual is prepared to expend on a good or service to procure it, reflecting the value the individual places on it.

Bundles

A grouping of products or services sold together as a single package for a combined price.