| The advantages of foreign direct investment are |
| 1. Foreign investment reduces the disparity that exists between costs and revenues, especially when they are calculated in different currencies. |
| 2. From the foreign affiliate's point of view, FDI is beneficial because they get advanced resources and additional capital at their disposal. Which of the advantages given above is/are correct? |
A) Only 1
B) Only 2
C) Both 1 and 2
D) neither 1 nor 2
Correct Answer: C
Solution :
[c] Different international markets have different tastes, different preferences and different requirements. By investing in a company in such a country, on enterprise ensures that its business practices and products watch the needs of the market in that country specifically.
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