Consider a country that presently has a high level of unemployment because of weak economic conditions. Its income levels are very low. This country may be an attractive target as a result of ____ motives by U.S. firms that engage in direct foreign investment.
A) revenue-related
B) cost-related
C) A and B
D) none of the above

Question

Quizplus · Accepted Answer

U.S. firms may find the country attractive for cost-related motives, as low income levels and high unemployment can lead to lower labor costs.

Consider a Country That Presently Has a High Level of Unemployment