Since shareholders of MNCs may indirectly benefit from corporate international diversification,
A)therefore firms are motivated to undertake FDI for the purpose of providing shareholders with diversification services.
B)therefore firms are motivated to undertake FDI for the purpose of being part of the global minimum variance portfolio.
C)therefore firms are motivated to undertake FDI for the purpose of staying on the efficient frontier.
D)none of the above

Question

Quizplus · Accepted Answer

Firms undertake FDI primarily for strategic business reasons such as market expansion, resource acquisition, and competitive advantage, rather than solely to provide shareholders with diversification benefits.

Since Shareholders of MNCs May Indirectly Benefit from Corporate International