When a firm perceives that a foreign currency is _, the firm may attempt direct foreign investment in that country, as the initial outlay should be relatively _.

The correct sentence is: When a firm perceives that a foreign currency is undervalued, the firm may attempt direct foreign investment in that country, as the initial outlay should be relatively low.

Explanation:

Whenever a currency loses its value against the dollar or another currency (euro, pounds), it will be an excellent opportunity to invest. In the short term that investment can create benefits for the entity.

When a firm perceives that a foreign currency is _______, the firm may attempt direct foreign investment in that country, as the initial outlay should be relatively _______.

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When a firm perceives that a foreign currency is _, the firm may attempt direct foreign investment in that country, as the initial outlay should be relatively _.