Direct investment requires a firm to maintain ______ ownership of its facilities, offices, and plants in a foreign country

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $24.99Unlock all

Prepare for your Marketing SmartBook Test with our interactive quiz. Use flashcards and multiple-choice questions, complete with hints and explanations. Ace your exam effortlessly!

Multiple Choice

Direct investment requires a firm to maintain ______ ownership of its facilities, offices, and plants in a foreign country

Explanation:
Direct investment means the firm owns and controls its foreign operations rather than just licensing or exporting. To maintain full control over its facilities, offices, and plants abroad, the firm typically holds 100% ownership—a wholly owned subsidiary. Ownership that's only 50% implies shared or joint control, which isn’t direct investment in the same sense. Zero ownership isn’t investment at all, and a shared arrangement still means partner involvement rather than complete control.

Direct investment means the firm owns and controls its foreign operations rather than just licensing or exporting. To maintain full control over its facilities, offices, and plants abroad, the firm typically holds 100% ownership—a wholly owned subsidiary. Ownership that's only 50% implies shared or joint control, which isn’t direct investment in the same sense. Zero ownership isn’t investment at all, and a shared arrangement still means partner involvement rather than complete control.

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy