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International Financial Management Study Set 1
Quiz 13: Direct Foreign Investment
42
Question 42
True False
42.Although direct foreign investment is sometimes conducted, benefits are rarely realized.
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Q 43
43.MNCs often attempt to set up production in locations where land and labor are expensive, because expensive factors of production indicate high demand.
Q 44
44.Due to market imperfections, the cost of factors of production (such as labor) may differ substantially across countries.
Q 45
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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