A Firm Is Most Likely to Favor Foreign Direct Investment

question 108

Multiple Choice

A firm is most likely to favor foreign direct investment over exporting when

• A) the firm wants its technological know-how to be widely disseminated.
• B) the firm wishes to maintain control over its operations and business strategy.
• C) the transportation costs are low.
• D) there are no trade barriers.
• E) the firm wants to customize its products as per the tastes and preferences of foreign consumers.

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Definitions:

Past Experiences

The collection of events and occurrences in one's life that shapes their behavior, preferences, and reactions.

Counterconditioning

A therapy technique where a person is taught to replace an undesirable response to a stimulus with a more desirable one.

Resistance

In psychotherapy, the patient's unwillingness to discuss or approach certain topics, thoughts, or experiences.

Transference

An unconscious redirection of feelings from one person to another, often reproduced in therapy sessions.