____ is not a cost-related motive for direct foreign investment.
A) Exploiting monopolistic advantages
B) Fully benefiting from economies of scale
C) Using foreign factors of production
D) Using foreign raw materials

Question

Quizplus · Accepted Answer

Exploiting monopolistic advantages is not related to cost motives for direct foreign investment. Instead, it is related to seeking new markets, gaining strategic assets or knowledge, or reducing risk. The other options (B, C, and D) are all related to cost motives such as reducing production costs, accessing cheaper input factors, or fully utilizing economies of scale.

____ Is Not a Cost-Related Motive for Direct Foreign Investment