Toyota has manufacturing facilities in Cambridge and Woodstock Ontario. These are wholly-owned subsidiaries of the Japanese based company. Which of the following is an advantage of this direct investment?
A) Direct investment allows a firm to keep full control over the investment.
B) Direct investment involves minimal financial or time expenditures.
C) Direct investment ensures that a firm is shielded from market changes.
D) Direct investment protects the firm from currency devaluation.
E) Direct investment involves fewer risks than joint ownership.
Correct Answer:
Verified
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