The Existence of Economies of Scale Suggests That

question 28

Multiple Choice

The existence of economies of scale suggests that:

• A)FDI is a complement to exporting.
• B)exporting can be preferable to FDI.
• C)licensing local firms in the foreign market is preferable to exporting.
• D)inherent disadvantages cannot be fully overcome.

---

Definitions:

Priority in Bankruptcy

The ranking order established by bankruptcy law that determines the sequence in which creditors are paid from a debtor's estate.

Accounts Receivables

The amounts of money owed to a company by customers for goods or services that have been delivered or used but not yet paid for.

Negotiable Instrument

A document in writing that promises to pay a certain sum of money, either upon request or at a predetermined date, with the person responsible for payment identified on the document.

Delivered

Refers to goods, documents, or other items that have been transported and handed over to the person they were intended for.