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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?


Definitions:

Sales Training

The process of equipping sales personnel with the necessary skills, information, and behaviors to effectively sell a product or service.

Net Profit

The amount of money left from all revenues after deducting all expenses, taxes, and costs, indicating the actual profit of a business.

Operating Business

The day-to-day activities involved in running a business, including management, production, and the provision of services.

Marketing Costs

The total expenses related to promoting and selling a product or service, including advertising, public relations, and promotional strategies.

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