An advantage of foreign direct investment versus domestic investment for businesses can be to:
A. encourage the flourishment of 'sweatshops.'
B. cut costs of production.
C. reduce overall risk relative to financial investments available at home.
D. increase profit without having to pay taxes on the earnings.
Answer: B
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Refer to Scenario 25-2. As a result of Kristy's deposit, Bank A can make a maximum loan of
A) $2,000. B) $8,000. C) $10,000. D) $50,000.
Hardee's announces "buy one get one free" breakfast sandwiches. This is an example of:
A. the use of incentives. B. a macroeconomic decision. C. hoarding scarce resources. D. how people assess the health benefit of fast food breakfast.
There is a shortage when price is _____ the equilibrium level.
Fill in the blank(s) with the appropriate word(s).
Recall the Application about the merger of Sirius Satellite Radio and XM Satellite Radio to answer the following question(s).Recall the Application. Sirius and XM proposed the merger because they were:
A. losing money because their fixed costs were very high. B. losing money because they faced the advertisers' dilemma. C. earning duopolists' profits that were greater than zero, but knew they could earn more as a single firm. D. losing money because their variable costs were higher than the price they could charge.