Which of the following statements about foreign affiliates is (are) true?

Question

Quizplus · Accepted Answer

All of the statements are true. Foreign affiliates can often generate higher profits due to access to new markets and economies of scale. Additionally, by diversifying the parent company's operations across different countries and industries, foreign affiliates can reduce overall portfolio risk. Furthermore, foreign affiliates can benefit the host country's economy by creating jobs, contributing to trade (both imports and exports), and improving the balance of payments through foreign investment.

Which of the Following Statements About Foreign Affiliates Is (Are)