Which of the following is not a cost-related motive of direct foreign investment?
A) International diversification.
B) Low labor costs.
C) Land can be purchased at a low price.
D) Manufacturing plants can be built for a low price.

Question

Quizplus · Accepted Answer

International diversification is not a cost-related motive of direct foreign investment, as it relates to spreading business activities across different countries to minimize risks and take advantage of global opportunities, not primarily to reduce costs. B, C, and D are all cost-related motives as they involve accessing cheaper labor, land, and production facilities in foreign markets.

Which of the Following Is Not a Cost-Related Motive of Direct