An advantage of foreign direct investment versus domestic investment for businesses can be to:

A. cut costs of production.
B. reduce overall risk relative to financial investments available at home.
C. increase profit without having to pay taxes on the earnings.
D. encourage the flourishment of ‘sweatshops’.


A. cut costs of production.

Economics

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Explain what a cartel is and the difficulties faced in maintaining a cartel

What will be an ideal response?

Economics

Railroads had advantages over canals in all respects except

(a) year-around service. (b) speed of delivery. (c) full access to shipping points. (d) there is no "except"; all of the above were advantages of railroads.

Economics

Coffee and donuts are complements in consumption. Suppose the economy expands so that consumer income increases, and coffee is a normal good

What impact does this change in the coffee market have on the donut market under a general equilibrium analysis? A) Donut demand shifts rightward and donut price and quantity increase B) Donut demand shifts rightward, donut price increases, and donut quantity declines C) Donut demand shifts leftward, donut price declines, and donut quantity increases D) Donut demand shifts leftward and donut price and quantity decline

Economics

An organization that is structured along a set of autonomous divisions led by a corporate headquarters office is called

A) M-form. B) U-form. C) T-form. D) a matrix.

Economics