Which of the Following Is Not a Cost-Related Motive of Direct

question 54

Multiple Choice

Which of the following is not a cost-related motive of direct foreign investment?

• A) International diversification.
• B) Low labor costs.
• C) Land can be purchased at a low price.
• D) Manufacturing plants can be built for a low price.

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Definitions:

Organization Chart

A visual representation of the hierarchical structure of an organization, showing relationships between different positions and departments.

Delegation of Authority

The process by which authority is distributed to lower levels of management within an organization to make decisions and complete tasks.

Stockholders

Individuals or entities that own shares in a corporation, giving them ownership interests and typically rights to dividends and a vote in corporate matters.

Privately Held

A company ownership structure where shares are not available to the public and are owned by a relatively small number of shareholders.