« previous next »

Author Question: A firm that buys goods that it would normally produce internally from an international company is ... (Read 95 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?

Never take aspirin without food because it is likely to irritate your stomach. Never give aspirin to children under age 12. Overdoses of aspirin have the potential to cause deafness.

Did you know?

About 80% of major fungal systemic infections are due to Candida albicans. Another form, Candida peritonitis, occurs most often in postoperative patients. A rare disease, Candida meningitis, may follow leukemia, kidney transplant, other immunosuppressed factors, or when suffering from Candida septicemia.

Did you know?

Cocaine was isolated in 1860 and first used as a local anesthetic in 1884. Its first clinical use was by Sigmund Freud to wean a patient from morphine addiction. The fictional character Sherlock Holmes was supposed to be addicted to cocaine by injection.

Did you know?

Pregnant women usually experience a heightened sense of smell beginning late in the first trimester. Some experts call this the body's way of protecting a pregnant woman from foods that are unsafe for the fetus.

Did you know?

Anti-aging claims should not ever be believed. There is no supplement, medication, or any other substance that has been proven to slow or stop the aging process.

Rebound Tenderness, Apply Firm Pressure to the Abdomen Rebound Tenderness, Apply Firm Pressure to the Abdomen
International Performance in Reading, Math, and Science, Eight Grade International Performance in Reading, Math, and Science, Eight Grade
At breakfast, a middle-class husband sits absorbed in the newspaper and the public affairs of the da At breakfast, a middle-class husband sits absorbed in the newspaper and the public affairs of the da
Air masses interact to produce weather Air masses interact to produce weather
A company that sells sweatshirts finds that the profit can be modelled by P(s)= ... A company that sells sweatshirts finds that the profit can be modelled by P(s)= ...
Mg can react with HCl to produce the white solid MgCl2 and H2 gas. A student mixes 1.99 g of ... Mg can react with HCl to produce the white solid MgCl2 and H2 gas. A student mixes 1.99 g of ...
Video: Summary of glucose catabolism

For a complete list of videos, visit our video library