In Comparing Exporting to Direct Foreign Investment (FDI), an Exporting

question 2

Multiple Choice

In comparing exporting to direct foreign investment (FDI) , an exporting operation will likely incur ____ fixed production costs and ____ transportation costs than DFI.

• A) higher; higher
• B) higher; lower
• C) lower; lower
• D) lower; higher

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Definitions:

Dispatched

The process of sending off to a destination or for a purpose, often used in contexts of mail, orders, or tasks being sent out or completed.

Insurance Company

A business entity that provides financial protection or reimbursement against losses to individuals or entities, in exchange for the payment of premiums.

Merchants

Individuals or entities involved in the wholesale or retail purchase and sale of goods, often specialized in a particular trade or business.

Standardized Forms

Pre-designed documents with uniform format and content used across various transactions or processes for efficiency and consistency.