Which of the following identifies the motivation for much of the foreign direct investment by non-U.S.firms?
A)desire to disperse production activities to optimal locations
B)need to suppress emerging economies such as China,India,and Brazil
C)demand for skilled workers in foreign nations
D)lack of adequate environmental regulations
E)establishment of multinational treaties

Question

Quizplus · Accepted Answer

The desire to disperse production activities to optimal locations is a common motivation for foreign direct investment, as firms seek to achieve economies of scale, reduce costs, and gain access to new markets. While other factors such as the availability of skilled workers and the establishment of multinational treaties may have some influence on investment decisions, they are not as significant as the desire to optimize production activities. The need to suppress emerging economies and lack of adequate environmental regulations are not legitimate motivations for foreign direct investment.

Which of the Following Identifies the Motivation for Much of the Foreign