Which of the Following Is the Most Costly Form of Foreign

question 1

Multiple Choice

Which of the following is the most costly form of foreign direct investment?

• A) Offshoring
• B) Franchising
• C) Importing
• D) Licensing

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Definitions:

Economic Efficiency

A condition in which resources are distributed to optimize the production of goods and services while minimizing costs.

Brand Loyalty

The tendency of consumers to continuously purchase one brand's products over competing ones.

Substitute Products

Goods and services that can be used in place of each other based on their utility and functional qualities.

Covert Collusion

A form of collusion that occurs in secret or is hidden, where competing firms in an industry agree to control prices or market shares without public knowledge.