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:

Noncontrolling Interest

The portion of equity (ownership) interest in a subsidiary not attributable to the parent company.

Intra-Entity Asset Transfers

Transactions involving the transfer of assets between divisions or units within the same company.

Net Income

Company's earnings following the deduction of all expenses and taxes from its revenue.

Intra-Entity Asset Transfers

Transactions involving the transfer of assets between divisions or departments within the same entity, often for internal record-keeping and consolidation purposes.