What is the most likely disadvantage of direct investment for an investing company?
A) weak relationships with local distributors
B) minimal investment control
C) product standardization requirements
D) devalued currency risks
E) excessive freight charges

Question

Quizplus · Accepted Answer

Direct investment in a foreign country exposes the investing company to currency risks, including the potential for the local currency to devalue against the investor's home currency, which can significantly impact the value of the investment.

What Is the Most Likely Disadvantage of Direct Investment for an Investing