Author Question: A firm that buys goods that it would normally produce internally from an international company is ... (Read 93 times)

CQXA

  • Hero Member
  • *****
  • Posts: 546
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
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
 

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?

Normal urine is sterile. It contains fluids, salts, and waste products. It is free of bacteria, viruses, and fungi.

Did you know?

If you could remove all of your skin, it would weigh up to 5 pounds.

Did you know?

Though newer “smart” infusion pumps are increasingly becoming more sophisticated, they cannot prevent all programming and administration errors. Health care professionals that use smart infusion pumps must still practice the rights of medication administration and have other professionals double-check all high-risk infusions.

Did you know?

More than 20 million Americans cite use of marijuana within the past 30 days, according to the National Survey on Drug Use and Health (NSDUH). More than 8 million admit to using it almost every day.

For a complete list of videos, visit our video library