Of the Following,which Is NOT a Cost of Foreign Direct

question 7

Multiple Choice

Of the following,which is NOT a cost of foreign direct investment?

• A) Developing countries may be exploited by MNEs.
• B) Human rights firms may exploit the labor force in host countries.
• C) Local governments in host countries may lack corporate social responsibilities on the part of MNEs.
• D) Host countries have been concerned about political interference by MNEs in their country's affairs when things do not go the way the foreign company wants.
• E) It led to a lapse in job creation and economic flow in the United States.

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Definitions:

Bottom-Up

An investment approach that focuses on the analysis of individual stocks and de-emphasizes the significance of macroeconomic cycles and market cycles.

Derivatives

Financial securities whose value is derived from the value of an underlying asset or group of assets, such as futures and options.

Speculative Instruments

Financial instruments that carry a high degree of risk, as they are based on the speculation of future prices rather than fundamental or intrinsic values.

Hedge Risks

Strategies or financial instruments used to offset potential losses or gains that may be incurred by a companion investment.