What are the major reasons a multinational corporation would engage in Foreign Direct Investment (FDI)?
What will be an ideal response?
Greater profit earning opportunities in other markets; take advantage of economies of scale and/or scope; have direct access to natural resources; operate within a currency union and avoid restrictions and other discriminatory policies against foreign businesses operating within a country.
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The concept of twin deficits refers to ________
A) the phenomenon of simultaneous trade and government budget deficits B) the phenomenon of simultaneous government and private budget deficits C) the phenomenon of simultaneous state and federal budget deficits D) all of the above E) none of the above
Which of the following will cause an increase in the steady-state growth rate of output per worker?
A) an increase in the saving rate B) a reduction in the population growth rate C) a reduction in the rate of depreciation D) a reduction in the saving rate E) none of the above