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When firms expand internationally through foreign direct investment they must carefully analyze potential locations. They consider...

When firms expand internationally through foreign direct investment they must carefully analyze potential locations. They consider several different factors including the inflation rate. What kind of factor is this?

profit retention

market potential

infrastructural stability

human resource productivity

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Answer #1

Profit retention

Reason: Inflation rates affect the net profit and net cost values incurred, in real terms. It is important to analyze inflation rates in each country in order to find out the profit retention rates.

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