Which of the following is a characteristic of foreign direct investment?
A) relatively low financial investment
B) low exposure to political risk
C) high profit potential
D) simple management

Question

Quizplus · Accepted Answer

One of the main reasons for foreign direct investment is the potential for high profits due to investing in a foreign market with greater growth potential or access to resources not available domestically. A and D are not characteristic of FDI, as it typically involves significant financial investment and complex management. B is also not characteristic, as FDI often involves exposure to political risk in the foreign market.

Which of the Following Is a Characteristic of Foreign Direct