The motivation for much of the foreign direct investment by non-U.S.firms was the desire to:
A) disperse production activities to optimal locations.
B) suppress the emerging economies such as China, India, and Brazil.
C) spread communism throughout the world.
D) increase the competition between domestic industries and U.S. corporations.
E) bridge the national differences in culture, consumer preferences, and business practices.

Question

Quizplus · Accepted Answer

Dispersing production activities to optimal locations is a common motivation for foreign direct investment (FDI). By investing in foreign countries, firms can take advantage of lower labor costs, favorable regulations, and access to markets, among other benefits. This allows them to produce goods or services more efficiently and effectively to meet demand in their home market or other parts of the world.

The Motivation for Much of the Foreign Direct Investment by Non-U.S.firms