A multinational enterprise $($MNE$),$ by definition, is a firm that engages in foreign direct investment when doing business abroad.

Group of answer choices

False

TrueWhich of the following statements is true of direct ownership?

Group of answer choices

It provokes protectionist responses from host countries.

It provides a firm with equity ownership rights and management control rights.

It allows transfer of power and management to firms in host countries.

It leads to the possibility of unauthorized diffusion of firm$-$specific know$-$how.