Which of the following is not a cost-related motive of direct foreign investment?
A) international diversification
B) low labor costs
C) low price of purchasing land
D) weak value of the foreign currency needed

Question

Quizplus · Accepted Answer

International diversification is not a cost-related motive of direct foreign investment. It is instead a motive related to reducing risk by diversifying operations across multiple countries. The other options listed (low labor costs, low price of purchasing land, and weak value of the foreign currency needed) are all cost-related motives for direct foreign investment.

Which of the Following Is Not a Cost-Related Motive of Direct