Why Does a Multinational Firm Have to Go for Direct

question 10

Essay

Why does a multinational firm have to go for direct foreign investment instead of licensing a local firm to carry out production on its behalf?

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Definitions:

Mortality Table

A table that lists death rates according to age groups.

Mortality Table

A mortality table, or life table, is a statistical chart used in insurance to give the probability of death for people at different ages, helping in the assessment of risk.

Social Security Taxes

Taxes levied on both employers and employees to fund the Social Security program, which provides retirement, disability, and survivorship benefits.

Tax Refund

A tax refund is the return of excess taxes paid by an individual or business to the government, usually received after the annual tax return is processed.