Question

Which of the following reflects the relationship between international business and domestic business?

A. Domestic businesses find it relatively easy to manage profits in the current scenario.
B. Domestic businesses find it relatively easy to manage profits in the current scenario.
C. Most domestic businesses are the result of customization efforts of international businesses.
D. The ability to invest abroad is to a large extent a function of domestic economic vitality.
E. Domestic businesses are more viable as capital tends to move toward minimum use.

Answer 1

The ability to invest abroad is to a large extent a function of domestic economic vitality.

Step-by-step explanation:

The correct answer is D. The ability to invest abroad is to a large extent a function of domestic economic vitality. Domestic economic vitality refers to the strength and stability of a country's economy. In order for domestic businesses to effectively invest and operate in the international market, it is crucial for the domestic economy to be vibrant and prosperous. The ability to invest abroad is directly influenced by the economic strength of the country. When the domestic economy is thriving, it provides businesses with the necessary resources and opportunities to expand globally. For example, a country with a strong domestic economy can attract foreign investors, have access to capital investment for overseas expansion, and benefit from favorable trade policies and agreements.