What Is the Advantage of Foreign Direct Investment

question 30

Multiple Choice

What is the advantage of foreign direct investment?

• A) Helps in retaining advantage over competition
• B) Reduces transportation costs
• C) Creates a company tailored to a foreign market's unique characteristics
• D) All of the above

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Definitions:

Total Profits

The final amount of income a business makes after accounting for all costs, expenses, and taxes.

Capacity Utilization

The percentage of a company's total production capacity that is currently being used.

Customer Preferences

Individual likes or dislikes influencing purchasing decisions, varying greatly among consumers.

Quantification

The process of measuring, calculating, or assigning a numerical value to something.