Question

Which of the following identifies the motivation for much of the foreign direct investment by non-U.S. firms? a. The desire to disperse production activities to optimal locationsb. The need to suppress emerging economies such as China, India, and Brazilc. The demand for skilled workers in foreign nationsd. The lack of adequate environmental regulationse. The establishment of multinational treaties

Answer 1

Answer:

The correct answer is letter "A": The desire to disperse production activities to optimal locations.

Explanation:

Land and society are factors influencing where a business should take its production. Thanks to the worldwide economy, it is not necessary for firms to specialize in what their country can provide since they can manage their manufacturing process in the country where they think the business could provide them more revenues. This scenario, in most cases, implies low labor costs and fewer regulations for the company to operate.