« previous next »

Author Question: A firm that buys goods that it would normally produce internally from an international company is ... (Read 92 times)

CQXA

  • Hero Member
  • *****
  • Posts: 546
on: Jul 1, 2018
A firm that buys goods that it would normally produce internally from an international company is using
 
  A) transfer pricing.
  B) insourcing.
  C) international outsourcing.
  D) domestic outsourcing.

Question 2

What are the major reasons a multinational corporation would engage in Foreign Direct Investment (FDI)?
 
  What will be an ideal response?


Sammyo

  • Sr. Member
  • ****
  • Posts: 329
Reply #1 on: Jul 1, 2018
Answer to Question 1

C

Answer to Question 2

Greater profit earning opportunities in other markets; take advantage of economies of scale and/or scope; have direct access to natural resources; operate within a currency union and avoid restrictions and other discriminatory policies against foreign businesses operating within a country.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Before a vaccine is licensed in the USA, the Food and Drug Administration (FDA) reviews it for safety and effectiveness. The CDC then reviews all studies again, as well as the American Academy of Pediatrics and the American Academy of Family Physicians. Every lot of vaccine is tested before administration to the public, and the FDA regularly inspects vaccine manufacturers' facilities.

Did you know?

Though methadone is often used to treat dependency on other opioids, the drug itself can be abused. Crushing or snorting methadone can achieve the opiate "rush" desired by addicts. Improper use such as these can lead to a dangerous dependency on methadone. This drug now accounts for nearly one-third of opioid-related deaths.

Did you know?

For about 100 years, scientists thought that peptic ulcers were caused by stress, spicy food, and alcohol. Later, researchers added stomach acid to the list of causes and began treating ulcers with antacids. Now it is known that peptic ulcers are predominantly caused by Helicobacter pylori, a spiral-shaped bacterium that normally exist in the stomach.

Did you know?

Children with strabismus (crossed eyes) can be treated. They are not able to outgrow this condition on their own, but with help, it can be more easily corrected at a younger age. It is important for infants to have eye examinations as early as possible in their development and then another at age 2 years.

Did you know?

According to research, pregnant women tend to eat more if carrying a baby boy. Male fetuses may secrete a chemical that stimulates their mothers to step up her energy intake.

Renzo Piano Building Workshop, International departures lounge, Kansai International Airport, Osaka, ... Renzo Piano Building Workshop, International departures lounge, Kansai International Airport, Osaka, ...
Examples of the most common X-ray positions and the images they produce. Examples of the most common X-ray positions and the images they produce.
Region’s Culture in International Context Region’s Culture in International Context
Pharmaceutical Company Representatives Pharmaceutical Company Representatives
How many grams of NO are required to produce 145 g of N2 in the following reaction? 4NH3 + 6NO ... How many grams of NO are required to produce 145 g of N2 in the following reaction? 4NH3 + 6NO ...
opener E. coli have been genetically engineered to produce lycopene opener E. coli have been genetically engineered to produce lycopene
Video: Membrane transport proteins - pores, gated channels and pumps

For a complete list of videos, visit our video library