Examlex

Solved

Despite Its Advantages, FDI Has Been Described as an "Expensive

question 110

Essay

Despite its advantages, FDI has been described as an "expensive" and "risky" international growth strategy. Other things being equal, why is FDI expensive and risky when compared to licensing and exporting?


Definitions:

Tacit Collusion

A form of collusion among competitors in which they cooperate to achieve higher prices or market share without explicit communication.

Product Differentiation

the process of distinguishing a product or service from others in the market to make it more attractive to a particular target audience.

Price Leadership

A strategy used by a dominant company in a market to set the price of a product or service, which competitors then follow.

Product Differentiation

A strategy where businesses distinguish their products from those of competitors in the market through design, quality, or other features to create a perceived value among consumers.

Related Questions