If the Net Present Value of a Direct Foreign Investment

question 12

Multiple Choice

If the net present value of a direct foreign investment is negative, the multinational firm should

• A) reject any proposals.
• B) consider establishing a sales office.
• C) consider licensing.
• D) both A and C.

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Definitions:

Terrorist Attacks

Acts of violence carried out by individuals or groups with the intent to cause fear, disruption, or political change.

Business Leaders

Individuals who are at the forefront of making decisions, guiding strategies, and steering the operations and future direction of a business or organization.

Plant And Equipment

are tangible assets used in the operation of a business, including machinery, buildings, and vehicles.

Future Sales

Future sales refer to the projected revenue or the volume of goods and services a business expects to sell during a future period.