Which of the Following International Business Activities Constitutes a Foreign

question 82

Multiple Choice

Which of the following international business activities constitutes a foreign direct investment? All firms mentioned are based in Australia.

• A)Scary Spider Spirits imports a thousand cases of rum from the Dominican Republic.
• B)Woolworths opens retail stores in Indonesia.
• C)University of Melbourne runs training sessions for Papua New Guinean civil servants in Victoria.
• D)Merkizer Pharmaceuticals licenses an Indian company to manufacture a drug under its patents.

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Definitions:

Decision-Making Stage

The phase in the problem-solving or decision-making process where options are evaluated and a choice is made.

Behavioural Decision Model

A concept in psychology that examines the decision-making processes individuals use, including biases, judgments, and social influences.

Limited Information

A condition in decision-making processes where all necessary data or details are not available to the decision-maker.

Bounded Rationality

A concept suggesting that the cognitive limitations of the mind, and the finite amount of time available, limit human decision-making capabilities.