Which of the Following Is an Advantage to Exporting Goods

question 35

Multiple Choice

Which of the following is an advantage to exporting goods to reach international markets rather than entering into some form of FDI?

• A) fewer agency costs
• B) fewer direct advantages from research and development
• C) a greater risk of losing markets to copycat goods producers
• D) an inability to exploit R&D as effectively as if also invested abroad

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Definitions:

Counterattitudinal Behavior

Actions that are contrary to one's personal beliefs, attitudes, or values, which can sometimes lead to a change in those attitudes due to cognitive dissonance.

Spreading Alternatives

The act of diversifying choices or options in decision-making or behavior.

Free Choice Paradigm

A laboratory situation in which people make a choice between two alternatives, and after they do, attraction to the alternatives is assessed.

Dissonance Reduction

Involves efforts or strategies to alleviate the discomfort caused by holding two or more conflicting cognitions, such as beliefs, attitudes, or behaviors.