Conglomerate investments usually are rated as low risk, because foreign governments see them as providing fewer benefits to the MNC and greater benefits to the country than other investments.

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In a conglomerate investment, the goods or services produced are not similar to those produced at home. These types of investments usually are rated as high risk, because foreign governments see them as providing fewer benefits to the country and greater benefits to the MNC than other investments.

Conglomerate Investments Usually Are Rated as Low Risk, Because Foreign