In the context of the strategies that organizations use for competing in the international environment, a direct foreign investment occurs when a firm owns physical assets in another country.
Answer the following statement true (T) or false (F)
True
Rationale: Correct. In the context of the strategies that organizations use for competing in the international environment, a direct foreign investment occurs when a firm headquartered in one country builds or purchases operating facilities or subsidiaries in a foreign country; that is, the firm actually owns physical assets in the other country. See 3-3: The Human Resource Function in International Business
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