Question

Consider a country that presently has a high level of unemployment because of weak economic conditions. Its income levels are very low. This country may be an attractive target as a result of ____ motives by U.S. firms that engage in direct foreign investment. a. revenue-related b. cost-related c. A and B d. none of the above

Answer 1

Answer:

b. cost-related          

Explanation:

           Direct foreign investment is a way of investment by a firm or an individual which is made in one country into the business interests available in the other country.

            In the context, country with low income and high rate of unemployment is a high target by the United States's firms because of cost related motives as the firm who makes investment and engages  employees to work are likely to pay less as wages to its employees. It will give benefits to the firm in relation to the cost.