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Author Question: A firm that buys goods that it would normally produce internally from an international company is ... (Read 88 times)

CQXA

  • Hero Member
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  • 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
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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.


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