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A Foreign Investment Undertaken by an MNE That Is Considered

Question 39

Multiple Choice

A foreign investment undertaken by an MNE that is considered risky from a political and currency perspective may still be undertaken because:


A) The investor is forming a strategic alliance with a domestic partner.
B) The MNE is basing its foreign investment decisions on a portfolio basis.
C) The MNEs management does not believe that risk can be measured or predicted.
D) The investor knows that they will be more than adequately compensate for accepting higher risk.

Correct Answer:

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