____ is not a disadvantage of direct foreign investment.
A) The expense of establishing a foreign subsidiary
B) The uncertainty of inflation and exchange rate movements
C) Political risk
D) All of these are disadvantages of direct foreign investment.

Question

Quizplus · Accepted Answer

All of the options listed (A, B, and C) are recognized disadvantages of direct foreign investment, making D the correct answer. Establishing a foreign subsidiary can be expensive, inflation and exchange rate movements add financial uncertainty, and political risk can affect the stability and profitability of the investment.

____ Is Not a Disadvantage of Direct Foreign Investment