An advantage of foreign direct investment versus domestic investment for businesses can be to:
A) cut costs of production.
B) reduce overall risk relative to financial investments available at home.
C) increase profit without having to pay taxes on the earnings.
D) encourage the flourishment of 'sweatshops'.

Question

Quizplus · Accepted Answer

Foreign direct investment can often allow businesses to access cheaper resources and labor, leading to lower production costs.

An Advantage of Foreign Direct Investment Versus Domestic Investment for Businesses