Which of the Following Is an Example of Direct Foreign

question 66

Multiple Choice

Which of the following is an example of direct foreign investment?

• A)exporting to a country
• B)establishing licensing arrangements in a country
• C)purchasing existing companies in a country
• D)investing directly (without brokers) in foreign stocks

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Definitions:

Efficiency

Optimal allocation of resources to ensure the best possible outcome or utility with minimal waste or inefficiency.

Efficiently Allocated

The optimal distribution of resources among different possibilities to maximize productivity and utility.

Least Cost

The principle of choosing the option that provides the necessary level of benefit or utility at the minimum possible cost.

Production

The process of combining various material inputs and immaterial inputs (plans, know-how) to make something for consumption.