When FDI Takes the Form of an Acquisition of an Established

question 24

Multiple Choice

When FDI takes the form of an acquisition of an established enterprise in the host economy as opposed to a greenfield investment,the immediate effect may be to _____ as the multinational tries to restructure the operations of the acquired unit to improve its operating efficiency.

• A)aggressively recruit local personnel
• B)install local personnel in key management positions
• C)apply for public funding through an initial public offering
• D)reduce employment

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Definitions:

Maslow's Hierarchy

A psychological theory proposed by Abraham Maslow that categorizes human needs into a five-tier model, from basic (physiological) needs to higher-level (self-actualization) needs.

Needs

Fundamental requirements that individuals or groups must have met in order to function or survive.

Hierarchical

A structure or organization in which entities are ranked one above the other according to status or authority.

Family Life Cycle

A series of stages through which a family progresses over time, including events like marriage, parenthood, retirement, and the death of family members.