What is the international business environment MOST conducive to the creation of wealth by MNCs?
A) Rapidly changing conditions so that no one government can exercise control over an MNC
B) Countries being divided into rival trading blocs so that MNCs can take advantage of bargaining
C) Stable international security so investments are not threatened
D) Policies of mercantilism
Question 2
How does foreign direct investment compare to indirect portfolio investment?
A) Foreign direct investment involves such as owning a factory, company, or real estate in a foreign country, whereas indirect portfolio investment such as buying stocks and bonds or making loans to a foreign company.
B) Foreign direct investment involves such as owning a factory, company, or real estate in a foreign country, whereas indirect portfolio investment involves taking loans from a foreign company.
C) Foreign direct investment involves such as trading in the currency of a foreign country, whereas indirect portfolio investment such as buying stocks and bonds or making loans to a foreign company.
D) Foreign direct investment involves such as loaning a factory, company, or real estate in a foreign country, whereas indirect portfolio investment such as buying stocks and bonds or making loans to a foreign company.
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