____ Is Not a Cost-Related Motive for Direct Foreign Investment

question 12

Multiple Choice

____ is not a cost-related motive for direct foreign investment.

• A) Exploiting monopolistic advantages
• B) Fully benefiting from economies of scale
• C) Using foreign factors of production
• D) Using foreign raw materials

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Definitions:

Long

A term used in investing to denote the purchase of a security with the expectation that the asset will rise in value.

Futures Contract

A legally binding agreement standardized across the industry to purchase or sell a particular item at a set price at a future date, typically utilized for trading commodities or financial assets.

Margin

The difference between the selling price of a product or service and its cost of production, or the amount of equity an investor has to deposit to borrow money for investing.

Futures Contracts

These are standardized legal agreements to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.