Imagine That a U

Multiple Choice

Imagine that a U.S.firm issues a press release regarding its intentions to acquire a foreign firm, a competitor.This competitor is located in a country with cheaper raw materials, more productive labor, and lower corporate tax rates.Which of the following factors is consistent with a demand motive for foreign direct investment?

A) The foreign firm is a competitor.
B) There are cheaper raw materials.
C) There is more productive labor.
D) None of these are correct.