International Financial Management Study Set 1
Quiz 13: Direct Foreign Investment
42.Although direct foreign investment is sometimes conducted, benefits are rarely realized.
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43.MNCs often attempt to set up production in locations where land and labor are expensive, because expensive factors of production indicate high demand.
44.Due to market imperfections, the cost of factors of production (such as labor) may differ substantially across countries.
45.In assessing the risk of an individual project, the expected correlation of the new project's returns with those of the prevailing business should be considered.
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