Though the US is not a low-labor cost country, FDI inflows still occur for all b
ID: 396130 • Letter: T
Question
Though the US is not a low-labor cost country, FDI inflows still occur for all but which of the following reasons:
The investor seeks to assemble the product near large markets
The investor seeks to bypass tariffs on imported products
The investor is taking advantage of the US’s lower labor standards
The investor is looking to generate additional revenue
The investor seeks to assemble the product near large markets
The investor seeks to bypass tariffs on imported products
The investor is taking advantage of the US’s lower labor standards
The investor is looking to generate additional revenue
Explanation / Answer
Answer is -
The investor is looking to generate additional revenue
To take advantage of the size of the US economy and potential of customers to buy the products, FDI inflows occur to generate additional revenue.
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