is investment by investors in one country in companies in other countries by which the investors...

is investment by investors in one country in companies in other countries by which the investors gain significant management control?

6 According to the textbook, planned socialism would have greater stability compared with the capitalist economy.

True False

Change in planned socialist economies tends to occur slowly. True False

The former systems of the Soviet Union and Eastern Europe were market socialist systems ?True False

Expert Solution

1. According to the textbook, planned socialism would have greater stability compared with the capitalist economy. This statement is true.

2. Change in planned socialist economies tends to occur slowly. This statement is true.

3. The former systems of the Soviet Union and Eastern Europe were market socialist systems ? This Statement is false. They had command economy instead.

is investment by investors in one country in companies in other countries by which the investors gain significant management control?

Answer to this is investors generally invest in another company in regard to FDI (Foreign direct investment).A foreign direct investment (FDI) is an investment made by a firm or individual in one country into business interests located in another country. Generally, FDI takes place when an investor establishes foreign business operations or acquires foreign business assets in a foreign company.

So yes, the investor does usually invest in one country in companies in another countries to gain significant management control so to gain powers in management and get into the top hierarchy of the company. It makes them not to rely on stakeholders to make decisions.

Rahul Sunny answered 2 years ago

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