Which of the following statements about foreign affiliates is (are) true?
A) In general, foreign affiliates are more profitable than domestic businesses.
B) Foreign affiliates usually lower the portfolio risk of the parent company.
C) Foreign affiliates may have a significant positive impact on the host company's economic growth, employment, trade, and balance of payments.
D) All of these options are true.

Question

Quizplus · Accepted Answer

All of these statements about foreign affiliates are true. Foreign affiliates can often benefit the parent company financially by being more profitable, while also lowering the parent company's portfolio risk. Additionally, foreign affiliates can have a positive impact on the host country's economy by creating jobs and contributing to trade and balance of payments.

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