Which of the Following Best Describes the Direct Investment Global

question 3

Multiple Choice

Which of the following best describes the direct investment global entry strategy?

• A) With direct investment, a firm maintains total ownership of its plants, operation facilities, and offices in a foreign country.
• B) Direct investment occurs when a firm enters a new market by pooling its resources with those of a local firm to form a new company in which ownership, control, and profits are shared.
• C) Direct investment refers to depositing payroll funds in a foreign bank.
• D) Direct investment designates the maximum quantity of a product that may be brought into a country during a specified time period.
• E) Direct investment occurs when a producer sells its offering in a foreign market at a price less than its production cost.

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