Direct foreign investment is commonly considered by MNCs because it allows the MNC to:
A) attract new sources of demand.
B) enter profitable markets.
C) react to exchange rate movements.
D) react to trade restrictions.
E) All of these are correct.

Question

Quizplus · Accepted Answer

Direct foreign investment allows MNCs to attract new sources of demand, enter profitable markets, react to exchange rate movements, and react to trade restrictions. Therefore, all of the choices are correct.

Direct Foreign Investment Is Commonly Considered by MNCs Because It