The ultimate form of foreign involvement is direct ownership of foreign-based assembly or manufacturing facilities. One of the advantages of direct ownership can include economies of scale, creating jobs in the host country, developing deeper relations with local suppliers etcetera and the firm
A) reviews global outreach projections.
B) receives no disadvantages to direct investment.
C) retains full control over its investment.
D) reviews the successes from e-commerce.
E) redefines the business concept.

Question

Quizplus · Accepted Answer

Direct ownership allows the firm to retain full control over its investment, which is not the case with other forms of foreign involvement such as joint ventures or licensing agreements. This can be an advantage for the firm in terms of decision-making and overall management of operations. The other options are either not applicable or are incorrect.

The Ultimate Form of Foreign Involvement Is Direct Ownership of Foreign-Based