____ Is Not a Disadvantage of Direct Foreign Investment

question 8

Multiple Choice

____ is not a disadvantage of direct foreign investment.

• A)The expense of establishing a foreign subsidiary
• B)The uncertainty of inflation and exchange rate movements
• C)Political risk
• D)All of the above are disadvantages of direct foreign investment.

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Definitions:

Tax Specialist

A professional expert in tax law, regulations, and planning to optimize taxation outcomes for individuals or businesses.

Tax Return

A document filed with state or federal taxing authorities that reports income, expenses, and other pertinent tax information to calculate tax liability.

Short Run

A period in which at least one input, such as plant size, is fixed and cannot be changed by the firm.

Fixed Plant Capacity

The maximum output that a facility can produce in a given period under normal conditions, determined by its physical size and design.