The industrial organization suggests that firms engage in Foreign Dire – McqOptions

MCQOPTIONS

1.	The industrial organization suggests that firms engage in Foreign Direct Investment (FDI) because________.
A.	certain assets are worth more under foreign than local control
B.	there are differences in the cost of capital
C.	complete ownership of the local firm can harm the country
D.	a foreign firm tries to prevent the leakages of its technology
Answer» B. there are differences in the cost of capital

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