Import Tariffs and Non-Tariff Barriers Suggest That

question 25

Multiple Choice

Import tariffs and non-tariff barriers suggest that:

• A)FDI is a substitute for exporting.
• B)exporting is preferable to FDI.
• C)exporting is preferable to licensing local firms in the foreign markets.
• D)such measures restrict the ability of MNEs' to expand their operations.

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Definitions:

Customizing Orders

The process of making changes to standard product offerings to meet the specific needs or preferences of a customer.

Profit Margin

A financial metric that measures the percentage of profit a company produces from its total revenue.

Additional Labor

Employees or work hours added beyond the initial planning or standard staffing levels, often to meet increased production demands or to cover for unexpected labor shortages.

Variable Cost Concept

A cost that varies with the level of output or activity, in contrast to fixed costs, which remain constant regardless of activity.