Which of the following statements is true of foreign direct investment?
A) The multinational either creates a wholly or partially owned and controlled foreign subsidiary in the host country.
B) It involves permitting a licensee of a trademark to market the licensor's goods or services in a particular nation.
C) It is less risky than international trade and international franchising and licensing.
D) The capital invested is not subject to government restrictions and domestic law of the host country.
Correct Answer:
Verified
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