MNCs May Undertake Overseas Investment Projects in a Foreign Country

Multiple Choice

MNCs may undertake overseas investment projects in a foreign country, despite the fact that local firms may enjoy inherent advantages. This implies that

A) MNCs are making a mistake in this case and will have to eventually withdraw.
B) MNCs should have significant advantages over local firms such as comparative advantages due to intangible assets.
C) the local firms will not have to compete due to their inherent advantages over the foreigners.
D) none of the above