Which of the Following Is the Most Disingenuous Argument in Favor

question 92

Multiple Choice

Which of the following is the most disingenuous argument in favor of FDI?

• A)Shareholder diversification
• B)The internalization theory of FDI
• C)The promise of synergistic gains
• D)Vertical integration

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Definitions:

Variable Cost

Costs that change in proportion to the level of activity or volume of production, such as raw materials or sales commissions.

Prime Cost

The combined costs of direct materials and direct labor that are directly involved in the manufacturing of a product.

Direct Labor

The wages and salaries of employees who are directly involved in the production of goods or services.

Manufacturing Overhead

All manufacturing costs that are not directly associated with the production of goods, such as utilities, rent, and salaries for managers.