From a portfolio standpoint,the value of foreign direct investment depends on all of the following EXCEPT:
A)whether shareholders are internationally diversified
B)the relative costs of international diversification for the MNC and for individual investors
C)the extent to which domestic systematic risk is unsystematic from a global standpoint
D)the extent of economies of scale and scope

Question

Quizplus · Accepted Answer

The value of foreign direct investment (FDI) from a portfolio standpoint is influenced by factors related to diversification and risk, such as international diversification of shareholders, relative costs of international diversification, and the nature of domestic systematic risk on a global scale. Economies of scale and scope, while important for operational efficiency and competitive advantage, do not directly affect the portfolio value of FDI in the context of diversification and risk management.

From a Portfolio Standpoint,the Value of Foreign Direct Investment Depends