When a Firm Invests Resources in Business Activities Outside Its

question 18

Multiple Choice

When a firm invests resources in business activities outside its home country,giving it control over those activities,it is referred to as:

• A)international trade.
• B)domestic direct investment.
• C)transnational barter.
• D)foreign direct investment.

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Definitions:

Nash Equilibrium

A state in a game where no player can benefit by changing their strategy while the other players keep theirs unchanged.

Competitor's Intentions

The strategic plans and actions that a business's rivals aim to undertake to gain a competitive advantage.

Nash Equilibrium

A concept in game theory where all participants are assumed to know the equilibrium strategies of the others, and no player has anything to gain by changing only their own strategy.

Payoff

The return or reward received as a result of making a particular decision or action, often used in the context of game theory and economics.