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In a Brief Essay, Discuss How Both Exporting and FDI

question 51

Essay

In a brief essay, discuss how both exporting and FDI enable international businesses to maintain control in a foreign environment.


Definitions:

Marginal Value

Additional benefit derived from purchasing one more unit of a good.

Consumer Surplus

The gap between the price consumers are ready to pay for a good or service and the price they actually incur.

Marginal Revenue

The surplus revenue acquired from the sale of one more unit of a good or service.

Profit Maximizing Output

The level of production at which a firm achieves the highest possible profit, determined by the point where marginal cost equals marginal revenue.

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