The most important cost-related motive for direct foreign investment is diversification across product markets.

Question

Quizplus · Accepted Answer

The most important cost-related motive for direct foreign investment is typically related to accessing lower production costs, such as lower labor or raw materials costs in the foreign country. Diversification across product markets can be a secondary benefit, but it is not typically the primary motive for foreign investment.

The Most Important Cost-Related Motive for Direct Foreign Investment Is