Because setting up a foreign operation can involve significant costs,MNCs must:
A)borrow the money necessary for the foreign operation from foreign banks.
B)borrow the money necessary for the foreign operation from domestic banks.
C)weigh the benefits of the foreign operation against the costs of the operation.
D)involve foreign investors in the foreign operation.

Question

Quizplus · Accepted Answer

MNCs must carefully consider the costs associated with setting up a foreign operation and weigh them against the potential benefits. This requires a thorough analysis of market conditions, regulatory requirements, and infrastructure, among other considerations. Borrowing money from either foreign or domestic banks and involving foreign investors are options, but not necessarily the best choices without a comprehensive cost-benefit analysis.

Because Setting Up a Foreign Operation Can Involve Significant Costs,MNCs