Which of the Following Is a Reason for Foreign Direct

question 45

Multiple Choice

Which of the following is a reason for foreign direct investment?

• A) To reduce costs of doing business
• B) To protect domestic markets
• C) To protect foreign markets
• D) All of the above

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Definitions:

Lead Times

The total time that elapses between the initiation of a process and its completion, often critical in manufacturing, supply chain management, and project planning.

Lot-For-Lot

Lot-for-lot ordering is an inventory management technique where the order quantity is set equal to the demand for the next period, optimizing inventory levels and reducing holding costs.

EOQ

Economic Order Quantity; a model used in inventory management to determine the optimal order size that minimizes total holding costs and ordering costs.

Setup Cost

The expenses incurred in preparing equipment or processes for a production run or the start of an operation.